Impact of tax reform on households

General rates would have increased without tax reform, as rates were indexed to the Wage Price Index before tax reform.

The table below provides an example of the impact on a typical household. It shows that rates would have increased by $172 without tax reform. It also shows that insurance duty would continue to be charged. This example does not consider the impacts of reducing conveyance duties. If this family buys a home in 2016-17, they will save $7,040 in conveyance duty on a $500,000 home.

Table 3 Estimated impact of tax reform on a household, excluding conveyance duty cuts

  2011-12
($)
2016-17
($)
Difference
($)
Difference
(%)
With tax reform     
General Rates 1,276 1,900 624 49
Insurance Duty 221 0 -221 -100
Total 1,497 1,900 403 27
     
No tax reform     
General Rates 1,276 1,448 172 13
Insurance Duty 221 300 79 36
Total 1,497 1,748 251 17

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