NZPA has an article which quotes Dr Cullen:
Dr Cullen said there was nothing in the Australian tax cut package for those earning under $30,000 a year and just $20 a week for those earning up to $74,000 a year, but $128 a week for those on $200,000 a year.
“Not the kind of programme you would expect to see from a Labour-led government,” Dr Cullen said.
Okay – someone earning $30,000 a year pays $5,730 tax in NZ. Before this announcement they were going to end up in Australia paying only $2,850 tax. Once this package is fully implemented they will pay only $1,500 tax on $30,000 of income – a 5% average tax rate. This is what Cullen calls nothing?
A worker earning $30,000 in Australia wil have a takehome pay that is a whopping $81 a week higher than under Dr Cullen. Now that is a huge disparity. And it is $26 a week more than before the announcement.
Someone on $70,000 a year pays $18,570 tax in NZ. Before this announcement they were going to end up in Australia paying only $15,600 tax. Once this package is fully implemented they will pay only $13,900 tax on $70,000 of income – a 20% average tax rate. And that is $32 a week more than efore this package was announced.
Someone on $30,000 in Australia will be keeping 14.1% more of their income than in NZ. On $70,000 they will be keeping 6.6% more of their income. On $200,000 they will be keeping just 4.4% more of their income.
Dr Cullen says that giving lower income workers a higher percentage of their income, than wealthier people, is something one would not expect from a Labour-led Government. Well not his one for sure.