Raw Audio: Brash & Key Announce Tax Policy
National Party Leader Don Brash unveiled a plan which he says will significantly restructure the tax system. He says it
will provide fair tax relief and targeted family assistance worth about $3.9 billion by the third year.
The features of National's fair tax plan include:
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%.
The withholding tax rate for secondary employment will be 19%. Income between $50,000 and $100,000 will be taxed at 33%.
Income above $100,000 will continue to be taxed at 39%.
The lower statutory rate of withholding tax applied to interest and other investment income will be reduced from 19.5%
to 18%.
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.
The personal tax reductions will be implemented in two stages in April 2006 and April 2007.
ENDS