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Income splitting for families with children

Annex

Table A: Gain per couple under income splitting
  Secondary earner income
$0k $10k $20k $30k $40k $50k $60k
Primary earner income $0k 0            
$10k 30 0          
$20k 570 0 0        
$30k 570 0 0 0      
$40k 810 240 240 240 0    
$50k 2,010 1,440 1,440 960 0 0  
$60K 3,210 2,640 2,160 960 0 0 0
$70k 5,010 3,960 2,760 1,560 600 600 0
$80k 6,330 4,560 3,360 2,160 1,200 600 0
$90k 6,930 5,160 3,960 2,760 1,200 600 0
$100k 7,530 5,760 4,560 2,760 1,200 600 0
$110k 8,130 6,360 4,560 2,760 1,200 600 0
$120k 8,730 6,360 4,560 2,760 1,200 600 0

 

Table B: Distribution of couples by primary/secondary earner income[7]
  Secondary earner income
$0 $0k - $10k $10k - $20k $20 - $30k $30 - $40k $40 - $50k $50 - $60k
Primary earner income $0 0            
$0 - $10k 175 0          
$10 - $20k 175 350 0        
$20 - $30k 9,100 21,175 175 0      
$30 - $40k 5,425 16,800 0 175 0    
$40 - $50k 8,750 14,875 3,675 2,625 1,575 0  
$50 - $60k 11,900 16,975 17,850 12,250 10,675 0 0
$60 - $70k 5,600 11,375 8,925 7,000 4,725 0 0
$70 - $80k 2,975 9,275 7,875 4,375 5,075 3,500 1,575
$80 - $90k 3,150 5,250 4,025 1,400 2,100 1,400 1,400
$90- $100k 1,225 3,675 875 1,575 1,225 175 1,225
$100 - $110k 175 1,225 1,225 350 700 525 0
$110 - $120k 700 875 350 875 700 525 0

 

Table C: Distribution of tax benefits from income splitting ($M)[8]
  Secondary earner income
$0 $0k - $10k $10k - $20k $20 - $30k $30 - $40k $40 - $50k $50 - $60k
Primary earner income $0 0            
$0 - $10k 0 0.1          
$10 - $20k 3.4 5.0 0        
$20 - $30k 3.4 5.5 0 0      
$30 - $40k 5.5 5.5 0.4 0.3 0.1    
$40 - $50k 17.0 20.2 14.7 10.3 5.1 0  
$50 - $60k 15.1 27.8 18.3 11.2 2.2 0 0
$60 - $70k 12.5 37.0 23.7 8.7 3.2 1.0 0.3
$70 - $80k 17.8 26.0 14.5 3.0 2.4 1.0 0.5
$80 - $90k 8.0 22.5 3.4 4.6 1.9 0.2 0.3
 $90- $100k 2.5 8.2 5.6 1.4 1.7 0.4 0
$100 - $110k 5.5 6.2 1.7 3.4 1.5 0.4 0
$110 - $120k 9.1 15.4 6.6 9.3 1.9 1.1 0

Regulatory Impact Statement

This discussion document incorporates the substantive regulatory impact analysis elements.

 

7 Based on Inland Revenue sample data.

8 Based on Inland Revenue sample data.