Labor also agrees to tax reform

As Labor has also agreed to a tax reform package if it is elected, it is now certain that whichever party is elected there will be tax changes from 1 July 2008 affecting at least those on incomes up to $180,000 (and all higher income earners if the Coalition is re-elected).

Labor has some variations on the Coalition's plan:

• a plan to reduce all the tax scales by setting the six-year goal of having only three - 15 per cent, 30 per cent and 40 per cent. Under Labor, the 30 per cent rate would apply to incomes between $37,000 and $180,000 and 40 per cent would come in after that.
• the reduction in the top tax rate for those on over $180,000 would not take effect for 3 years.

COALITION PROPOSAL (click on images to enlarge)



LABOR PROPOSAL