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Married
(iii) EXAMPLES OF THE EFFECT THE PROPOSED INCREASE IN PERSONAL
ALLOWANCE AND ADJUSTMENT TO 3RD TAX BAND WILL HAVE ON
SALARIES TAX PAYABLE AT VARIOUS INCOME LEVELS
Present
(Exempt up to $60,000)
Proposed
(Personal allowance increased by $10,000, subject to 10% clawback PLUS adjustment to 3rd tax band)
Appendix E(3) (cont'd)
Annual income
($)
Tax payable
Effective
Chargeable
rate
income
Tax payable
Effective
rate
($)
(%)
($)
($)
(%)
Tax saving
($)
61,000
50
0.1
NIL
50
70,000
500
0.7
NIL
500
72,000
700
1.0
2,200
110
0.2
590
84,000
2,100
2.5
15,400
1,040
1.2
1,060
96,000
4,200
4.4
28,600
2,790
2.9
1,410
108,000
6,600
6.1
41,800
4,860
4.5
1,740
120,000
9,500
7.9
55,000
7,500
6.3
2,000
132,000
12,500
9.5
68,200
10,550
8.0
1,950
144,000
15,500
10.8
81,400
13,850
9.6
1,650
160,000
19,500
12.2
99,000
18,250
11.4
1,250
170,000
22,000
12.9
110,000
21,000
12.4
1,000
180,000
24,500
13.6
120,000
23,500
13.1
1,000
192,000
27,500
14.3
132,000
26,500
13.8
1,000
204,000
30,500
15.0
144,000
29,500
14.5
1,000
216,000
33,500
15.5
156,000
32,500
15.0
1,000
228,000
36,500
16.0
168,000
35,500
15.6
1,000
240,000
39,500
16.5
180,000
38,500
16.0
1,000
(252,941)
42,735
16.9
252,941
41,735
16.5
1,000
(256,250)
43,562
17.0
256,250
42,281
16.5
1,281
Remarks
This group receives full
benefit from the increase
in personal allowance.
All of this group
receives partial benefit from the increase in
personal allowance while some will also benefit from the adjustment to the tax band.
This group receives no benefit from the increase in personal allowance but the full benefit of the adjustment to the tax band.
Standard rate taxpayers.