Taxpayers face ‘deficit levy’ in Budget

If you're bringing in more than $80,000 you can expect to pay an extra 1-2% tax while the Budget is in deficit, according to reports.
 
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01.Temporary tax to fix budget?

It's expected the government will introduce a debt tax for people earning over $80,000

The federal government is expected to reveal a temporary debt tax as part of its Budget on May 13, which would require taxpayers earning $80,000 to pay an extra $800 a year while the budget is in deficit, according to reports. 

This means that someone earning $400,000 would see an increase in tax of $8000, according to a report from News Corp.

The tax would work in a similar way to the Medicare surcharge, as a levy on taxable income. Taxpayers earning between $80,000 and $180,000 would pay an extra 1 per cent while those earning more than $180,000 would pay an extra 2 per cent.

Although the government has not confirmed or denied the introduction of a debt tax, Prime Minister Tony Abbott flagged “temporary” Budget pain in his pre-budget speech at the Sydney Institute on Monday night.

“I can assure you that everyone will be involved, including high income earners such as members of parliament,” Abbott said. 

 
 

 

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