The Government has just announced it is planning to increase tax on those earning more than $5 million a year, and that would be the first time since the 1970s that the amount of the tax will increase by more than 10%.

But if you’re a wealthy individual earning $5.5 million (£3.6m) you can expect to pay a bigger tax bill than most of the people who aren’t making that much.

There are two main ways that income tax could be increased: by raising the marginal tax rate on earnings above $25,000 a year and by raising capital gains tax. 

The Government will not specify the rates that would go up or down, but in a report on the proposed changes it said it would increase the marginal rate to 35%, from 20%.

The proposal to increase the rate of capital gains taxes was put forward by Finance Minister Mathias Cormann. 

What you need to know about the budget and tax changes The government says it wants to increase taxes on income above $1 million a person, but will not say how. 

However, it says the proposed increase in capital gains and inheritance taxes will not affect those earning over $5million. 

It also says it will increase the income tax rate by 10% for those earning less than $10,000 per year, from 20% to 25%. 

These are not the same changes that were proposed by Labor in 2016 when it was in opposition. 

In 2016 the Government was proposing a rate of 25% for income above that level, but that was scrapped by the Liberal Party in 2019, so it is likely that the same rules will apply. 

Capital gains tax changes The plan is a big change from Labor’s proposed change of 15% for all income above the $10 million threshold. 

That would be a substantial change, as it would raise the cost of capital gain tax by $3.2 billion a year. 

Tax changes There are two types of tax changes that are proposed by the Government in the Budget. 

Property taxes and property tax concessions. 

First, property taxes.

The Government will increase property taxes from $1,100 to $1.15 million, with an increase of 15%. 

Second, property tax concession. 

Under the proposal, property values will be exempt from tax for the duration of the property’s stay in the country. 

This is similar to what has been proposed for foreign investors in property. 

Proposed changes to tax concessions

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