"The decision means the top quartile of taxpayers – those earning more than $90,000 a year – will have effective average marginal tax rates 5 per cent higher under Labor than they would under the Coalition by 2022.
Analysis by the National Centre for Social and Economic Modelling reveals those earning $110,000 today are likely to earn $120,000 by 2022 and pay an extra $2300 in tax under Labor.
Residents of Palm Beach in Sydney and Toorak in Melbourne – where average taxable incomes reach up to $230,000 – will see the $11,000 extra they pay in tax spread to areas with below-average incomes, such as Campbelltown and Broadmeadows, through a permanent $16 billion low-income tax offset.
According to the Tax Office, the average taxable income is $58,700 a year, but that is skewed by high-income earners. The median or typical income is $43,900.
The cumulative effect of Labor's income tax changes will see inequality, measured by the Gini index (where 0 is perfectly equal and 1 completely unequal), modestly lower under Labor at 0.36 compared to 0.37 under the Coalition, according to Associate Professor Ben Phillips at the Australian National University.
At the same time, the 5 per cent of taxpayers earning more than $200,000 a year will pay 30 per cent tax on their super contributions, rather than the current 15 per cent. That change will add more than $19 billion to the budget over a decade.''
Now this has left me wondering what some good reasons would be for a high income earner to vote labor this election.
Thanks guys.
