Aussies paying less tax under Labour than Kiwis under National

Anthony Albenese has just announced amended tax cuts in Australia. His package is different to his promise to keep the tax cuts of the previous Government (and he now has to take electoral consequences of that), but he is still delivering significant tax cuts that again exposes how much more taxed we are in New Zealand.

Someone earning $70,000 in Australia will pay $11,788 in tax compared to $14,020 in NZ. So that’s an average rate of 16.8% compared to 20.0%.

At twice that or $140,000 an Aussie pays $33,094 tax and a Kiwi $37,120. That’s 23.6% vs 26.5%.

If you include our highest GST rate, then someone one $140,000 probably pays $8,461 more tax a year in NZ than Australia – that is equal to $162.71 a week.

Even someone on $240,000 income will pay less income tax in Australia.

I hope National’s tax cuts in May will be significant enough to close the gap between what Kiwis and Aussies have to pay to fund the state.