If KPMG’s international tax survey was a school report, New Zealand would be told it has improved but could do better.
We’ve moved from 18th to 24th on the list which shows the level of personal tax paid.
The improvement is a result of dropping tax rates and increasing the top tax threshold from $60,000 to $70,000. However, as KPMG New Zealand partner Paul Dunne points out (in the NBR) that’s less than twice the average wage and a very low income to attract a top tax rate by international standards.
Australia is 34th on the list. Its top tax rate is 45% but that doesn’t kick in until personal income gets to $180,000.
Bahrain, the Cayman Islands, Oman, and the United Arab Emirates top the list with a 0 rate of personal income tax.
Is that what oil does for an economy? If so, what a pity milk and meat don’t have the same effect.