Some interesting “Wealth Tax” ideas in there and proposed changes that would net an extra ~$5B (estimated).
- Big corporations tax: The corporate tax rate will be increased from 28 percent to 33 percent for big companies with annual turnover exceeding $30 million. This will impact about 0.7 percent of businesses (e.g. banks, supermarkets and energy companies).
And new income tax rates:
Current
| Income band | Tax rate |
|---|---|
| 0 - $15,600 | 10.5% |
| $15,601 - $53,500 | 17.5% |
| $53,501 - $78,100 | 30% |
| $78,101 - $180,000 | 33% |
| $180,001 and over | 39% |
Proposed
| Income band | Proposed rate |
|---|---|
| $0–$9,999 | 0% |
| $10,000–$19,999 | 10% |
| $20,000–$39,999 | 17.5% |
| $40,000–$59,999 | 25.5% |
| $60,000–$79,999 | 30.5% |
| $80,000–$159,999 | 33.5% |
| $160,000+ | 45% |
| – |
There are a few things to like here. I would rather the number were a little more clear.
I would rather see the total tax take; not just the differences. Where thy say “tax setting changes -$2,335M” I would like to know is that 10% less or 2%; so I could compare it to the proposed tax increase from the other sources they are expecting.
From budget 24/25 contributions from individual tax were $62.2B; which gives us a better understanding of how these numbers stack up.
So individuals will collectively get about a 3.75% tax cut; weighted to the lowest income earners.
Corporate tax was $18.2B which if I’m reading their policy correctly, will increase to $20.15B. Which is about a 10% increase.
New taxes and restoring landlord taxes will gain an additional $5.37B.
So for the entire $136B crown revenue the increase is ~4%.
As an Opportunity supporter I have to contrast it with their policy to see how it stacks up: