Income tax

What’s the problem we’re trying to fix?

Half of our collective pool of resources is raised from income taxes.  It’s super important that everyone contributes their fair share - those who can afford to, contribute the most, and we address the impact of income tax on the least well-off. At the moment we haven’t got this balance right. 

How could we make income taxes better?

Lower taxes on lower and middle incomes - making our tax system more “progressive” - and raise additional revenue to pay for the things that matter, through:

• A tax-free band for almost everyone - except a small number of people on super high-incomes. For example, this could mean we don’t pay tax on the first $5000 we earn.
• Change tax brackets to more accurately reflect ability to pay - Introducing more gradual tax brackets for those earning between $15-80,000 and moving the highest income tax threshold down to $150,000, from the current rate of $180,000
• Increase the tax rate paid by the highest income earners by instituting a new highest tax threshold

Why would this be better?

• • Big gains for equality - everyone’s work counts and those who can afford it, contribute more
  • For the majority of people, tax rates are lower or the stay the same
  • Lower income earners (below $80,000) pay less tax, and move up tax brackets more slowly

• Increases on the highest income earners mean better funding of schools, hospitals, and clean rivers that benefit everyone