Aussie Treasurer invites Kiwis to move to Australia

This week Peter Costello said that, after his tax cuts, New Zealanders
should move to Australia. Well actually, this is what he said:

Herald Sun: Costello welcomes rugby Kiwis [19may06]

Kiwis on average wages in New Zealand would “pay a lot less tax in Australia”, Mr Costello told ABC Radio.

And high income earners would benefit by relocating, he said.

“I think in New Zealand you go on the top tax rate at $63,000 New Zealand, which would be considerably less Australian, down around $50,000,” Mr Costello said.

“In Australia you are not going to go into the top tax rate until you earn above $150,000.

“And this is now becoming a bit of an issue in New Zealand.

“And if there are Kiwis who have skills and who want to come to
Australia as skilled immigrants of course they would be welcome in Australia.

“If they can play rugby union they will be doubly welcome.”

See also http://www.radionz.co.nz/news/latest/200605192019/14490120

Australia's top rate is 45 per cent. In New Zealand it is 39 per cent. I ran some comparisons the other day, and in reality, due to different numbers of thresholds and threshold levels, there really isn't much difference, especially once you i nclude all the hidden taxes in Australia like car registration and insurance.

NZ Individual tax rates		Australian Tax rates
Taxable income	Tax rate	Taxable income	Tax rate
up to $38,000	19.5	$0 – $6,000	Nil
$38,001 to $60,000	33	$6,001 – $25,000	15
$60,001 and over	39	$25,001 – $75,000	30
		$75,001 – $150,00	40
		$150,001 and over	45

Comparison of the effect of the tax rates

	Australia		New Zealand
Salary	Net Salary	Tax	Net Salary	Tax
$5,000	$5,000	$0	$4,025	$975
$10,000	$9,400	$600	$8,050	$1,950
$15,000	$13,650	$1,350	$12,075	$2,925
$20,000	$17,900	$2,100	$16,100	$3,900
$25,000	$22,150	$2,850	$20,125	$4,875
$30,000	$25,650	$4,350	$24,150	$5,850
$35,000	$29,150	$5,850	$28,175	$6,825
$40,000	$32,650	$7,350	$31,930	$8,070
$45,000	$36,150	$8,850	$35,280	$9,720
$50,000	$39,650	$10,350	$38,630	$11,370
$55,000	$43,150	$11,850	$41,980	$13,020
$60,000	$46,650	$13,350	$45,330	$14,670
$65,000	$50,150	$14,850	$48,380	$16,620
$70,000	$53,650	$16,350	$51,430	$18,570
$75,000	$57,150	$17,850	$54,480	$20,520
$80,000	$60,150	$19,850	$57,530	$22,470
$85,000	$63,150	$21,850	$60,580	$24,420
$90,000	$66,150	$23,850	$63,630	$26,370
$95,000	$69,150	$25,850	$66,680	$28,320
$100,000	$72,150	$27,850	$69,730	$30,270
$105,000	$75,150	$29,850	$72,780	$32,220
$110,000	$78,150	$31,850	$75,830	$34,170
$115,000	$81,150	$33,850	$78,880	$36,120
$120,000	$84,150	$35,850	$81,930	$38,070