Under Labour everyone who earns up to $300,000 a year will pay more tax in NZ than Australia

Labour have just announced a new tax rate of 39% on incomes over $180,000. This is in contrast to that has legislated to cut taxes.

Of course the 39% new tax rate is just the beginning. If they have a Labour/Green then they could strike a deal to implement part of the Greens’ tax agenda also.

But even with just what Labour is promising, this will see every New Zealander who earns up to and including $300,000 a year paying more tax in New Zealand than they would in Australia.

NZAustExtra tax NZ
 $    10,000 $      1,050 $             –   $          1,050
 $    20,000 $      2,520 $          342 $          2,178
 $    30,000 $      4,270 $      2,242 $          2,028
 $    40,000 $      6,020 $      4,142 $          1,878
 $    50,000 $      8,020 $      6,592 $          1,428
 $    60,000 $    11,020 $      9,592 $          1,428
 $    70,000 $    14,020 $    12,592 $          1,428
 $    80,000 $    17,320 $    15,592 $          1,728
 $    90,000 $    20,620 $    18,592 $          2,028
 $  100,000 $    23,920 $    21,592 $          2,328
 $  110,000 $    27,220 $    24,592 $          2,628
 $  120,000 $    30,520 $    27,592 $          2,928
 $  130,000 $    33,820 $    30,592 $          3,228
 $  140,000 $    37,120 $    33,592 $          3,528
 $  150,000 $    40,420 $    36,592 $          3,828
 $  160,000 $    43,720 $    39,592 $          4,128
 $  170,000 $    47,020 $    42,592 $          4,428
 $  180,000 $    50,320 $    45,592 $          4,728
 $  190,000 $    54,220 $    48,592 $          5,628
 $  200,000 $    58,120 $    51,592 $          6,528
 $  210,000 $    62,020 $    56,092 $          5,928
 $  220,000 $    65,920 $    60,592 $          5,328
 $  230,000 $    69,820 $    65,092 $          4,728
 $  240,000 $    73,720 $    69,592 $          4,128
 $  250,000 $    77,620 $    74,092 $          3,528
 $  260,000 $    81,520 $    78,592 $          2,928
 $  270,000 $    85,420 $    83,092 $          2,328
 $  280,000 $    89,320 $    87,592 $          1,728
 $  290,000 $    93,220 $    92,092 $          1,128
 $  300,000 $    97,120 $    96,592 $             528
 $  310,000 $  101,020 $  101,092 $             (72)

A person earning $40,000 a year pays 45% more tax in NZ than Australia. On $70,000 you are paying 11% more here than and on $200,000 you are paying 13% more here than Australia.

The amount of revenue this will bring in is trivial compared to the amount of extra and Labour is incurring. So beyond doubt, if re-elected, they’ll then say they need to increases tax even more.

National on the other hand says it is unfair that inflation pushes you into a higher tax bracket even when your disposable remains constant, so National will inflation adjust tax brackets to stop inflation pushing up your tax bill every year.

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