Australian Tax Cuts

There has been lots of reporting about the significant cuts announced in Australia. People should be aware that these are being done with a much lower per capita than NZ, and that the Australian Labor Party says they do not go far enough. Back in NZ, Labour only puts tax rates up!

I've just done a quick calculation on how much extra tax a person pays in tax in NZ, compared to Australia from 1 July. The first number is the income level, the second is the absolute $ extra in tax, and the third is the % your tax is greater than in Australia.

$20,000 $1,530 72.9%
$30,000 $1,380 31.7%
$35,000 $930 15.9%
$40,000 $720 9.8%
$50,000 $1,020 9.9%
$60,000 $1,320 9.9%
$70,000 $2,220 13.6%
$80,000 $2,620 13.2%
$90,000 $2,520 10.6%
$100,000 $2,420 8.7%
$110,000 $2,320 7.3%
$120,000 $2,220 6.2%
$130,000 $2,120 5.3%
$140,000 $2,020 4.6%
$150,000 $1,920 4.0%
$160,000 $1,320 2.5%
$170,000 $720 1.3%
$180,000 $120 0.2%
$190,000 -$480 -0.7%
$200,000 -$1,080 -1.5%

So you will pay less in Australia for all incomes up to $180,000. And the biggest percentage drop in tax paid will be for those earning $20,000 to $35,000.

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