Economic Policy > Lower Taxation
New Conservative will reform tax policy so that more families are able to be self-sufficient without the need for handouts.
Income tax acts as a deterrent to work and the average working family should be freed from paying an excessive portion of their earnings in taxes.
As we face uncertainty in the global market, it will be more important than ever to provide stimulation to the local economy and productivity via tax cuts.
New Conservative will replace the current 10.5% bracket with a $20,000 tax-free threshold. The rest of the tax rates will remain the same, but with each applied at a higher threshold. The $48,000 bracket will be raised to $60,000 and the $70,000 bracket will be raised to $100,000. The new structure will be as follows:
First $20,000 will be tax-free.
Next $40,000 (up to $60,000) will be taxed at 17.5%.
Next $40,000 (up to $100,000) will be taxed at 30%.
Income over $100,000 will be taxed at 33%.
New Conservative will index brackets to inflation after the dust settles on the new levels, so that families are not penalised by inflation and bracket creep. New Conservative also has a family policy that will allow parents to split their combined income for tax purposes.
New Conservative will end the tax-on-tax effect that GST has. You should not be paying GST on fees, rates, and excises imposed by the government.
New Conservative will repeal the regional fuel tax and roll back petrol tax increases added by the outgoing government. Electric vehicles will be required to pay road user charges and those payments must be up-to-date before a WOF is issued. Consultation with the logistics and automobile industry will be undertaken to see if road user charges could replace the petrol levy to create one unified system for all vehicles, with all revenue earmarked for road infrastructure spending. This would also make fuel purchased for motor boats and other motorised recreational activities free of road tax.
New Conservative will instruct the Treasury to explore the opportunity for an Every Transaction Tax (ETT) to be a replacement for GST. This would not be an additional tax, but it might capture trading that currently avoids taxation. New Conservative will also investigate transfer pricing so that multinational corporations pay more of their fair share in corporate taxes.
Summary for working families:
Your household will be paying at least $2,500 - $5,000 less in income tax every year.
You will no longer have to pay tax-on-tax when applying for a drivers licence, paying rates, or filling up at the pump.