Election 2011 - Party Policies - Tax - Income Tax

Election 2011 - Party Policies - Tax - Income Tax

Income Tax

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  • Personal taxes by 2018/19 will be 12½% on up to $20,000 income.
  • Personal taxes by 2018/19 will be 15% on income over $20,000. (more here)

  • Introduce a tax-free threshold of $10,000, and provide for a standard marginal tax rate of 19% from $10,000 to $42,500.
  • Support the implementation of other aspects of the tax changes announced in the 2008 budget, so that legal and effective tax rates are as follows by 2011: $0-$10,000 0%, 19% for $10,001 to $42,500, 33% from $42,501 to $80,000 and 39% from $80,001.
  • Ensure beneficiaries receive the benefits of the proposed changes by passing tax cuts on to those on benefits and adjusting benefit abatement rates to address the problem of benefit abatement for those moving into employment, and the removal of the poverty trap created by high marginal tax rates that exist for people on low incomes. (more here)

  • Labour believes that balance and fairness needs to be returned to the tax system, which is why it will introduce a 39% top tax rate for income over $150,000 and make the first $5,000 of income tax-free. (more here)

  • Reduce the tax paid by low income earners by not taxing the first $15,000 earned and introducing a progressive tax scale for income above this amount. (more here)

  • No tax on the first $25,000 earned. (more here)

Not set out on their website.

  • [Introduce] Income sharing recognises the costs of raising a family, and in particular, those situations where one parent is either a full-time carer for their children or works part-time. For tax purposes, the income of both parents is combined and then divided equally, which can mean that they pay less tax since it is levied at a lower rate under our progressive taxation system. (more here)

 

 

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