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Appendix F(3)(cont'd) (viii)EXAMPLES OF THE EFFECT THE PROPOSED INCREASES IN PERSONAL, CHILD AND DEPENDENT PARENT ALLOWANCES, THE INTRODUCTION OF A WORKING WIFE ALLOWANCE
OF $15,000, REDUCTION IN THE STANDARD RATE AND REVISION OF THE MARGINAL TAX RATES WILL HAVE ON SALARIES TAX AT VARIOUS INCOME LEVELS
Married person, with two children and two dependent parents
tad
Annual income
Present tax payable Proposed tax payable (without work- Proposed tax payable (with working (Exemption level: $103,636) ing wife) (Exemption level: $110,818) wife) (Exemption level: $124,455*)
Tax
Remarks
Effective
Amount
(A)
rate
Amount
Effective
rate
Tax saving
Effective
Amount rate
(B)
(A) - (B)
(C)
saving (A) (c)
($)
($)
(%)
($)
(%)
($)
(%)
($)
(%)
108,000
240
0.2
240
100.0
112,000
460
0.4
39
0.1
421
91.5
116,000
860
0.7
171
0.1
689
80.1
120,000
1,300
1.1
306
0.3
994
76.5
($)
240
100.0 460 100.0 860 100.0 1,300 100.0
(%)
This group receives full bene-
fit from the increase in personal allowance and the working wife allowance.
132,000
3,180
2.4
1,197
0.9
1,983
62.4
249
0.2
2,931
92.2
144,000
5,380
3.7
2,580
1.8
2,800
52.0
1,035
0.7
4,345
80.8
156,000
8,020
5.1
4,455
2.9
3,565
44.5
2,364
1.5
5,656
70.5
168,000
11,200
6.7
6,909
4.1
4,291 38.3
4,185
2.5
7,015
62.6
180,000
14,250
7.9
9,925
5.5
4,325
30.4
6,531
3.6
7,719
54.2
192,000
17,250
9.0
13,225
6.9
4,025 23.3
9,475
4.9
7,775
45.1
This group receives partial benefit from the increase in personal allowance but the full benefit of the revision to the marginal rates and
204,000
20,250
9.9
16,525
8.1
3,725 18.4
12,775
6.3
7,475
36.9
213,000**
the working wife allowance.
22,500
10.6
19,000
8.9
3,500 15.6 15,250
7.2
7,250
32.2
214,000 22,750
10.6
19,275
9.0
3,475
15.3 15,525
7.3
7,225
31.8
228,000
26,2501
11.5
22,775
10.0
240,000
...29,250
12.2
25,775
10.7.
3,475
252,000
32,250
12.8
28,775
11.4
3,475
3,475 13.2 19,025
11.9 10.8 25,025
8.3
7,225
27.5
22,025
9.2
7,225
24.7
9.9
7,225
22.4
288,000
;
41,250
14.3
37,775 13.1
324,000
50,250
15.5
46,775
14.4
3,475 3,475 6.9 43,025 13.3
8.4 34,025 11.8
7,225
17.5
7,225
14.4
This group receives no benefit from the increase in personal allowance but the full benefit of the revision to the marginal tax rates and the working wife allowance.
(360,263) 59,315
16.5
55,840
15.5
3,475
5.9 52,090 14.5
7,225
12.2
(361,765) 59,691 (399,737)
16.5
56,073 15.5
3,618
6.1 52,466 14.5
7,225
12.1
Standard rate taxpayers.
65,956
16.5
61,959 15.5
3,997
6.1 61,959 15.5
3,997
6.1
+
*
The examples shown above are calculated on the basis that the wife's income is in excess of the Working Wife Allowance of $15,000.
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