Capital Gains Tax

[Bjauck]

A gain will bump people into the next tax bracket, not necessarily the top bracket

Income	Tax rate	Effective tax rate
$0 – $14,000	10.5%	10.5%
$14,001 – $48,000	17.5%	10.5 - 15.5%
$48,001 – $70,000	30%	15.5 - 20.0%
Over $70,000	33%

Sure - their top bracket. Someone with few non-exempt assets will probably end up paying less tax under the TWG proposals.

Besides If the TWG’s are ever introduced and CGT receipts become meaningful then maybe those tax bands will be more generous and the top rate of income tax may be dropped to 28%...However our “poor” taxpayer may have already shifted all his equity into his over-capitalised multi-million Dollar exempt principal residence by then.