Question 1

There is a point at which tax charged at progressive rates on net chargeable income is equal to tax at standard rate on net assessable income minus concessionary deductions. The break-even point depends on personal circumstances, e.g., married or single.

Assuming no concessionary deductions and income starting from $250,000 to the breakeven point for 2 years, compute the breakeven points for the years of assessment 2018/19 and Proposed.

The relevant tax rates are:

2018/19		Proposed
Progressive rates		Progressive rates
First $50,000	2%	First $55,000	2%
Next $50,000	6	Next $55,000	7
Next $50,000	10	Next $55,000	9
Next $50,000	14	Next $55,000	13
Remainder	17	Remainder	16
Standard Rate	15	Standard Rate	15

The breakeven point for a single taxpayer with no dependent for the year of assessment 2018/19

Proposed