Extract from The Guardian
Figures confirm workers on high incomes will benefit significantly when second and third stages of plan take effect
The Turnbull government has released more detail about the income tax
cuts that will apply to workers on high incomes over the three tranches
of the $144bn package unveiled on budget night.
The government on budget night confirmed that a worker on a taxable income of $200,000 would get a tax cut worth $7,225 by the time the final stage of the budget plan takes effect.
Treasury officials on Tuesday tabled new figures breaking down the yearly gains to workers on various income levels as step two and step three of the tax package take effect.
The detailed breakdowns confirm several independent analyses released after the budget suggesting workers on high incomes will benefit significantly when the second and third stage of the government’s plan takes effect.
A worker on $200,000 with a tax liability of $67,232 will get a tax cut of $7,225 when the government’s plan to abolish the 37% tax bracket kicks in.
Workers on $130,000 will gain $450 when the 37% bracket goes, workers on $140,000 will get $900, $150,000 will get $1,350, $160,000 will get $1,800, $170,000 will get $2,250, $180,000 will get $2,700, $190,000 will get $3,950 and workers on $200,000 will get $5,200.
By contrast a worker on a taxable income of $60,000, with a tax liability of $12,147, will get an annual tax cut worth $540 as a consequence of increasing the $37,000 threshold to $41,000.
When introducing legislation giving effect to the measure last week, the government confirmed the cost of the first two tranches of its tax package was $102.35bn over a decade, with the third phase costing about $40bn from its introduction in 2024 to the financial year 2028-29.
Labor has been seeking year-on-year costings for the package after the forward estimates since the tax plan was revealed on 8 May.
But Treasury officials declined to share year-on-year costings when asked by the Labor senator Jenny McAllister to produce them on Tuesday. The officials confirmed they had calculated year-on-year costings but declined to produce them on the basis the figures were unreliable.
The finance minister, Mathias Cormann, said it was standard practice not to supply those figures because the accuracy of medium-term costings could not be guaranteed.
The shadow treasurer, Chris Bowen, said on Tuesday that Labor supported the first phase of the tax cuts. The proposed low and middle-income tax offset will give $530 to 4.4 million taxpayers with incomes between $48,000 and $90,000 in 2018-19.
Labor is keeping its options open on phase two of the package, and has been critical of the government’s plan to flatten the income tax scales.
The government on budget night confirmed that a worker on a taxable income of $200,000 would get a tax cut worth $7,225 by the time the final stage of the budget plan takes effect.
Treasury officials on Tuesday tabled new figures breaking down the yearly gains to workers on various income levels as step two and step three of the tax package take effect.
The detailed breakdowns confirm several independent analyses released after the budget suggesting workers on high incomes will benefit significantly when the second and third stage of the government’s plan takes effect.
A worker on $200,000 with a tax liability of $67,232 will get a tax cut of $7,225 when the government’s plan to abolish the 37% tax bracket kicks in.
Workers on $130,000 will gain $450 when the 37% bracket goes, workers on $140,000 will get $900, $150,000 will get $1,350, $160,000 will get $1,800, $170,000 will get $2,250, $180,000 will get $2,700, $190,000 will get $3,950 and workers on $200,000 will get $5,200.
By contrast a worker on a taxable income of $60,000, with a tax liability of $12,147, will get an annual tax cut worth $540 as a consequence of increasing the $37,000 threshold to $41,000.
When introducing legislation giving effect to the measure last week, the government confirmed the cost of the first two tranches of its tax package was $102.35bn over a decade, with the third phase costing about $40bn from its introduction in 2024 to the financial year 2028-29.
Labor has been seeking year-on-year costings for the package after the forward estimates since the tax plan was revealed on 8 May.
But Treasury officials declined to share year-on-year costings when asked by the Labor senator Jenny McAllister to produce them on Tuesday. The officials confirmed they had calculated year-on-year costings but declined to produce them on the basis the figures were unreliable.
The finance minister, Mathias Cormann, said it was standard practice not to supply those figures because the accuracy of medium-term costings could not be guaranteed.
The shadow treasurer, Chris Bowen, said on Tuesday that Labor supported the first phase of the tax cuts. The proposed low and middle-income tax offset will give $530 to 4.4 million taxpayers with incomes between $48,000 and $90,000 in 2018-19.
Labor is keeping its options open on phase two of the package, and has been critical of the government’s plan to flatten the income tax scales.
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