National’s Tax Cuts

* The 15% tax rate, which now applies to income below $9,500 will extend to $12,500.
* For income between $12,500 and $50,000, the tax rate will be 19% (down from 21%)
* Income between $50,000 and $100,000 will be taxed at 33%. (threshold increased by $40,000)
* Income above $100,000 will continue to be taxed at 39%.

Also the threshold for abatement of WFF payments will be $30,000 from April 2006, and to keep the effective tax rate on extra income low, the abatement rate will be 20%.

The company tax rate will be reduced to 30% in April 2008.