Oh the care from the politicians!

Originally posted by eagle888 ↑

bz847 not like you to get your facts wrong!

Firstly the top income tax bracket is 45% not 47% as stated and that wont be changing under the full govt plan. What will change is that its starting point has moved up from 180k to above 200k.

The final stage that kicks in on 1July,2024, thats six years away removes the 37% bracket and replaces it with one mammoth 32.5% that runs from income of $41,000-$200,000. So someone on $41,000 will be paying the same rate of tax as someone on $200,000 with the net result being the $41000 will get in dollar terms a piddly cut while those on $200,000 income will get an extra $7225. I guess that means everyone over $200,000 will get $7,225 while those earning up to $90,000pa will get between about $500 and a max of $665 a year for someone on $90,000.
Most Australians will get the lowest amount of around $500 a year translating to about $10 a week.

The $200,000 and above crowd will pocket $7225 translating to about $139 extra a week. Good to be in this group!

"Phase three only benefits upper-middle and high earners

Phase three, which would kick in on July 1, 2024, is the centrepiece of the plan and the biggest change to the current system.
It simply removes the 37 per cent tax bracket from the system, creating one giant middle tax bracket of 32.5 per cent for income between $41,000-$200,000.
That move doesn't give any additional tax relief to anyone earning $120,000 a year or less, but gives a steadily increasing tax break for everyone above that level until it tops out at the new top tax threshold of $200,000 where the 45 per cent tax rate kicks in.
The biggest beneficiary of this is anyone earning $200,000 a year or more, who gets 4.5-cents-in-the-dollar tax relief on earnings between $120,001-$180,000 and a 12.5-cents-in-the-dollar tax cut on income between $180,001-$200,000, adding $7,225 a year to their take-home income.”

http://www.abc.net.au/news/2018-05-11/budget-2018-income-tax-brackets-explained/9747794

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"The $200,000 and above crowd will pocket $7225 translating to about $139 extra a week. Good to be in this group!"

I don't envy them because those few taxpayers in that group will be paying 36% of all income tax come 2025!!
Whereas currently the top bracket only pay 30% of all income tax.
So bracket creep will be winning the battle come 2025.
Now that is what I call an overly progressive-scaled tax.
Glad I'm not in that top bracket that you consider are so fortunate.
Only a foolish zealot would be incentivised to be in that group paying 47% tax; if you don't pay the medicare levy then you must've paid private medical insurance instead.
Either way you've been taxed 2%+ over and above 45% eagle'!

I heard Turnbull say on ABC radio this evening that the taxpayers in the top bracket currently pay 30% of all income tax but when the tax changes are fully introduced in 2025, those in the top bracket [$200,000 plus] will be paying 36% of all income tax.