TAX RATES
Income Earned 95/96 04/05 05/06 06/07 07/08
$20,000 16 12 11 12 12
$30,000 22 17 17 16 13.5
$40,000 26 21 18 20 18
$50,000 29 21 23 22 21
$60,000 33 25 25 24 23
$70,000 35 30 25 25 24
$75-150,000 35 30 43 29 c+ 29 c+
$150,000 + 35 30 47 33 33 c

P.S. Medicare Levy + GST need to be factored in for a true focus. The rates above are after taking in to account the various tax thresholds.

So what is the taxation change for an income of $ 60,000pa on a $300,000 property at $320pw:

.
 Up to June 30, 2006
After July 1, 2007
Rates/Insurance/Maintenance pw $100 $100
Asset Management $29 $29
Interest on $300k loan pw $432 $432
Gross Cost
 $561 $561
Depreciation
 $135 $135
=
 $426 $426
Less rent $320 $320
(A)
 $106
(B)
 $106
Tax Credit before June 30 $24
2007
 $22
Owner cost is $82   $84
OR      
Tax negative impact of $2pw. Therefore, rents need to rise by $2 to offset the negative effect, but for this period, rents rose by $30pw.
 

12 Years of Personal Tax Rates

Taxable Income Tax Payable Post July 1995 Tax Payable Post July 2000 Tax Payable Post July 2006 Tax Payable Post July 2007
20,000 3124 2808 2400 2400
25,000 4715 4420 3225 3225
30,000 6605 6032 4800 4050
35,000 8495 7540 6375 5625
40,000 10587 9100 7950 7200
45,000 12867 10712 9525 8775
50,000 13147 12324 11100 10350
55,000 15572 14508 12675 11925
60,000 17997 16692 14250 13500
65,000 20422 19136 15825 15075
70,000 22847 21502 17400 16650
75,000 25272 23943 18975 18225
80,000 27697 26364 21050 20300
85,000 30122 28834 23125 22375
90,000 32547 31266 25200 24450
95,000 34972 33644 27275 26525
100,000 37397 36088 29350 28600
PROPERTY GEARING PROVIDES RELIEF FROM INCREASING TAXATION, THAT IS AS CERTAIN AS DEATH

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© Peter Campbell Realty - Albany Creek Office:
Phone 07 3264 2311 Email: rentals@petercampbellrealty.com
Caboolture Office:
Phone 07 5495 7811 Email: rentalscaboolture@petercampbellrealty.com