Tax Bands and Tax Rates
I propose to revert the marginal bands and marginal
rates for salaries tax to their 2002?3 levels.
In other words, the band width will be increased
from $30,000 to $35,000, and the two highest
marginal tax rates will be reduced from 13 per cent
and 19 per cent to 12 per cent and 17 per cent
respectively. The basic allowance and standard
rate will remain unchanged.
To reduce the burden of parents in raising their
children, I propose to increase the child allowance
from $40,000 to $50,000 for each child. In
addition, I propose to introduce an additional
one-off child allowance of $50,000 for each child in
the year of birth.
for Self-education Expenses
To facilitate the development of a knowledge-based
economy, the Government has been encouraging
employees to seek continual self-advancement through
learning. To this end, I propose to increase
the maximum amount of deduction for self-education
expenses from $40,000 to $60,000.
The implementation of the foregoing tax concessions
for individuals will start in 2007?8, reduce the
tax burden of 1.1 million taxpayers and cost
the Government about $4.9 billion a year.