Aussie Treasurer invites Kiwis to move to Australia

This week Peter Costello said that, after his tax cuts, New Zealanders
should move to Australia. Well actually, this is what he said:

Herald Sun: Costello welcomes rugby Kiwis [19may06]

Kiwis on average wages in New Zealand would “pay a lot less tax in Australia”, Mr Costello told ABC Radio.

And high income earners would benefit by relocating, he said.

“I think in New Zealand you go on the top tax rate at $63,000 New Zealand, which would be considerably less Australian, down around $50,000,” Mr Costello said.

“In Australia you are not going to go into the top tax rate until you earn above $150,000.

“And this is now becoming a bit of an issue in New Zealand.

“And if there are Kiwis who have skills and who want to come to
Australia as skilled immigrants of course they would be welcome in Australia.

“If they can play rugby union they will be doubly welcome.”

See also http://www.radionz.co.nz/news/latest/200605192019/14490120

Australia’s top rate is 45 per cent. In New Zealand it is 39 per cent. I ran some comparisons the other day, and in reality, due to different numbers of thresholds and threshold levels, there really isn’t much difference, especially once you i nclude all the hidden taxes in Australia like car registration and insurance.

NZ Individual tax rates

Australian Tax rates

Taxable income

Tax rate

Taxable income

Tax rate

up to $38,000

19.5

$0 – $6,000

Nil

$38,001 to $60,000

33

$6,001 – $25,000

15

$60,001 and over

39

$25,001 – $75,000

30

$75,001 – $150,00

40

$150,001 and over

45

Comparison of the effect of the tax rates

Australia

New Zealand

Salary

Net Salary

Tax

Net Salary

Tax

$5,000

$5,000

$0

$4,025

$975

$10,000

$9,400

$600

$8,050

$1,950

$15,000

$13,650

$1,350

$12,075

$2,925

$20,000

$17,900

$2,100

$16,100

$3,900

$25,000

$22,150

$2,850

$20,125

$4,875

$30,000

$25,650

$4,350

$24,150

$5,850

$35,000

$29,150

$5,850

$28,175

$6,825

$40,000

$32,650

$7,350

$31,930

$8,070

$45,000

$36,150

$8,850

$35,280

$9,720

$50,000

$39,650

$10,350

$38,630

$11,370

$55,000

$43,150

$11,850

$41,980

$13,020

$60,000

$46,650

$13,350

$45,330

$14,670

$65,000

$50,150

$14,850

$48,380

$16,620

$70,000

$53,650

$16,350

$51,430

$18,570

$75,000

$57,150

$17,850

$54,480

$20,520

$80,000

$60,150

$19,850

$57,530

$22,470

$85,000

$63,150

$21,850

$60,580

$24,420

$90,000

$66,150

$23,850

$63,630

$26,370

$95,000

$69,150

$25,850

$66,680

$28,320

$100,000

$72,150

$27,850

$69,730

$30,270

$105,000

$75,150

$29,850

$72,780

$32,220

$110,000

$78,150

$31,850

$75,830

$34,170

$115,000

$81,150

$33,850

$78,880

$36,120

$120,000

$84,150

$35,850

$81,930

$38,070

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