With quite a lot of talk recently around “bracket creep” (Stage 3 Tax cuts etc) I decided to have a wee look at Bracket creep over time. One particular page https://atotaxrates.info/individual-tax-rates-resident/historical-pre-2010-tax-rates/ was useful in providing some earlier years’ Tax Rates.
As we do, I decided to record some of this for myself. I’d allowed 5 ranges in my spreadsheet, based on the 5 levels we have today (Level 1 is 0 to 18.2k, level 2 is 18.2k up to 45k, level 3 is 45k up to 120k, level 4 is 120k to 180k, and level 5 is 180k and above).
Imagine my surprise when I happened upon the 1991/92 Fiscal Year. It had EIGHT levels, one of which encompassed just a $100 difference across its range !!! Say wha? No-one but a World’s greatest Treasurer could come up with something so mind-numbing !!! Look here:-
Note the Tax Rate (Level 4) from $20,601 to $20,700 at 29.5cents per $1. And then Level 6’s range was just $1000 – from $35k to $36k. Talk about an Accountants’ nightmare. My mind boggles at finding some kind of rational explanation for this effort. Does anyone out there have some clue as to WHY this may happened at that time? I wonder what the powers that be might have been smoking back then….
Benny
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