Copeland continues fight for fairer tax treatment

United Future Revenue spokesperson Gordon Copeland is continuing his campaign to persuade the Government to index the tax brackets for inflation between 1 April 2000 and 31 March 2005.

He says that based on Reserve Bank forecasts, cumulative CPI movement during that time will be 13.95%.

“This would adjust the current $38,000 bracket (the threshold between tax at 21 cents and 33 cents) to $43,300 and the current $60,000 bracket (the point at which the 39 cent rate cuts in) to $68,400.

“The Government says that at about $620 million this is too expensive, but I say what about fairness? What about the cut in real family incomes this represents at a time when the Government is not only running a large surplus but that surplus is itself well ahead of forecast?

“The OBERAC for the seven months ended 29 February 2004 is actually $740 million above forecast, so the plain and substantial fact is that the Government could adjust the income brackets for inflation, boost family incomes by $620 million, and still find itself about $120 million ahead of forecast.”

Mr Copeland calculates that the CPI adjustment would result in a tax cut of $1.65 per week for those earning below $43,300, $14.52 per week for those earning below $68,400 and $23.23 per week for those earning over $68,400.

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