(vii)
Appendix E(3) (cont'd)
EXAMPLES OF THE EFFECT THE PROPOSED INCREASES IN PERSONAL AND CHILD ALLOWANCES, REDUCTION IN THE STANDARD RATE AND ADJUSTMENT TO THE 3RD TAX BAND WILL
HAVE ON SALARIES TAX PAYABLE AT VARIOUS INCOME LEVELS
Single person, with two children
Present
Proposed
(exempt up to $44,000)
(exempt up to $53,000)
Annual income
($)
Tax payable
Effective
rate
Tax payable
Effective
Tax
rate
saving
($)
(%)
($)
(%)
($)
(%)
55,000
600
1.1
205
0.4
395
65.8
60,000
1,100
1.8
480
0.8
620
56.4
72,000
2,700
3.8
1,920
2.7
780
28.9
84,000
5,000
6.0
3,900
4.6
1,100
22.0
96,000
7,500
7.8
6,100
6.4
1,400
18.7
108,000
10,500
9.7
8,500
7.9
2,000
19.0
120,000
13,500
11.3
11,500
9.6
2,000
14.8
144,000
19,500
13.5
17,500
12.2
2,000
10.3
180,000
28,500
15.8
26,500
14.7
2,000
7.0
(206,250)
35,062
17.0
33,062
16.0
2,000
5.7
(217,647)
36,999
17.0
35,911
16.5
1,088
2.9
Married person, with two children
(exempt up to $75,000)
(exempt up to $89,000)
91,000
1,100
1.2
205
0.2
895
81.4
96,000
1,650
1.7
480
0.5
1,170
70.9
108,000
3,600
3.3
1,920
1.8
1,680
46.7
120,000
6,000
5.0
3,900
3.3
2,100
35.0
144,000
11,750
8.2
9,100
6.3
2,650
22.6
180,000
20,750
11.5
18,750
10.4
2,000
9.6
216,000
29,750
13.8
27,750
12.8
2,000
6.7
252,000
38,750
15.4
36,750
14.6
2,000
5.2
288,000
47,750
16.6
45,750
15.9
2,000
4.2
•
(303,125)
51,531
17.0
49,531
16.3
2,000
3.9
(308,823)
52,499
17.0
50,955
16.5
1,544
2.9
86
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