Legislation to raise top personal tax rate, FBT introduced

The Government today introduced legislation to increase the top personal income tax rate from 33% to 39% for income over $60,000, and the fringe benefit tax rate from 49% to 64%. Associated changes are made to the extra emolument rate for lump sum payments, the withholding rate for secondary employment, and the resident withholding tax rate on interest. Also introduced are new rules for calculating provisional tax during the next two income years to ensure that payments reflect the increased top personal income tax rate. For details see Taxation (Tax Rate Increase) Bill - Information Sheet.