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Calculator: How much extra tax will you personally pay under Shorten compared with Morrison?

Thursday, May 02, 2019

Labor leader Bill Shorten has been totally honest that, under a government he leads, taxes will be higher than under a Morrison Coalition government. Praise is due for the honesty.

What is unclear, however, is who will pay the higher taxes and how much. That is, who of us will pay more tax under a Shorten Labor government and how much will we pay?

We’ve put together a calculator that gives a guiding answer to that question. It’s a pretty good guide we think. You can go to the calculator here.

The calculator relates only to individual, personal tax. You can put into the calculator:
  1. Your income
  2. What % you think your income might increase over the years
  3. The value of cash rebates for fully-franked share dividends you currently receive
  4. How much your accountant costs each year
  5. The value of an investment property if you have one
The calculator will generate a figure on the extra tax under Labor.

The calculator shows that normally if you earn more than around $38,000 a year you will pay more tax. That is, most people will pay more tax under a Shorten Labor government.

You can play with the calculator. For example
  • What income do you think you might earn?
  • Is it worth buying fully-franked shares?
  • What would happen if you decided to buy an investment property?
The calculator will show you the tax bill under scenarios you choose.

We don’t offer an opinion on whether more tax is good or bad. Some people will say more tax is good. Some will say it’s bad. We’re just trying to identify facts.

The tax policy information underpinning the calculator is explained on our website. The information is based on publicly available policy sourced from Labor, the Coalition, government and the media. We have provided an advanced copy of the calculator to both Labor and the Coalition asking for their feedback, if any, on whether our tax policy assumptions are correct or not. We are happy to change the calculator if there are provable errors.

We trust this calculator contributes to a factual debate on tax in this election.

Election comment authorised by Ken Phillips, Melbourne.

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