Labour agrees to Coalition 30 cents tax rate cuts

Labor's plan is just to keep things complex - multiple thresholds just create complexity. Change the threshold once/flatten the scale and it will remain for a long period because it is so hard to change the thing.

Regardless of how you change the scales someone will always get their nose out of joint - if there was a trade-off between increasing the lowest threshold by $1800 (ie 10%) or lowering one of the other brackets by say 2% the group who don't see their bracket change will have a gripe regardless of how it impacts on the other groups.

 

I think reduction in income tax and increase in consumption tax such as GST is the way to go

 

I wish they could bring that forward to 2018-19!

 

Reduction in income tax - full stop! No need to increase other taxes.

As long as inflation is low, the RBA can just use Quantitative Easing to fund government spending!

 

Does this 30% tax from 37% have positive impact on negative gearing or Capitial Gain?
Definitely no. This will reduce your gain by 7% because u gaining from 30% tax. Where now its 37%.

This is for someone in 180k tax range. For 180-200k income its worse. .

 

I am more than happy to get my tax rate down to 30% so that I can save several thousand dollar of income tax. Claiming 7% less in negative gearing is peanut compared to my income tax saving. Way more money in my pocket. Negative gearing is never an investment objective. It is just part of the operation.