Sunday, July 10, 2011

New Income Tax Rates

The tax free threshold is going up and so are 15 and 30% tax rates:



I can see why the higher marginal rates aren't being emphasized anywhere... The Henry Review argued for a $25,000 tax free threshold and two tax brackets - 35% and 45% with the top rate coming in at $180,000 per year income. So this goes quite a long way there. The low income tax offset will be reduced. Why didn't they just get rid of it and make things simpler.

You can download the complete climate policy here.

For more analysis of the changes in tax rates.
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3 comments:

  1. Bankruptcy BenJuly 15, 2011 at 11:46 AM

    Do Australians only tolerate incrementalism in their tax reform as well?

    ReplyDelete
  2. David SternJuly 15, 2011 at 3:02 PM

    Yeah, it is weird that they didn't abolish the low income tax offset altogether. Maybe the Greens were against that in the negotiations.

    ReplyDelete
  3. fort worth accounting firmsNovember 1, 2011 at 5:26 PM

    Hi all...

    Your federal income tax rate depends on your filing status, number of allowances, income and pay frequency. I hope that it eventually proves easier for you the reader to follow the postings and comments.

    ReplyDelete