Modelled Income Tax

The income tax payable if tax settings are changed.

model_income_tax(sample_file, baseline_fy, n_dependants = 0L,
  elasticity_of_taxable_income = NULL, ordinary_tax_thresholds = NULL,
  ordinary_tax_rates = NULL, medicare_levy_taper = NULL,
  medicare_levy_rate = NULL, medicare_levy_lower_threshold = NULL,
  medicare_levy_upper_threshold = NULL,
  medicare_levy_lower_sapto_threshold = NULL,
  medicare_levy_upper_sapto_threshold = NULL,
  medicare_levy_lower_family_threshold = NULL,
  medicare_levy_upper_family_threshold = NULL,
  medicare_levy_lower_family_sapto_threshold = NULL,
  medicare_levy_upper_family_sapto_threshold = NULL,
  medicare_levy_lower_up_for_each_child = NULL, lito_max_offset = NULL,
  lito_taper = NULL, lito_min_bracket = NULL, lito_multi = NULL,
  Budget2018_lamington = FALSE, Budget2019_lamington = FALSE,
  Budget2018_lito_202223 = FALSE, Budget2018_watr = FALSE,
  Budget2019_watr = FALSE, sapto_eligible = NULL,
  sapto_max_offset = NULL, sapto_lower_threshold = NULL,
  sapto_taper = NULL, sapto_max_offset_married = NULL,
  sapto_lower_threshold_married = NULL, sapto_taper_married = NULL,
  sbto_discount = NULL, cgt_discount_rate = NULL,
  calc_baseline_tax = TRUE, return. = c("sample_file", "tax",
  "sample_file.int"), clear_tax_cols = TRUE,
  warn_upper_thresholds = TRUE, .debug = FALSE)

Arguments

sample_file	A sample file having at least as many variables as the 2012-13 sample file.
baseline_fy	If a parameter is not selected, the parameter's value in this tax year is used. Must be a valid tax year and one for which `income_tax` has been programmed.
n_dependants	The number of dependants for each entry in `sample_file`.
elasticity_of_taxable_income	Either `NULL` (the default), or a numeric vector the same length of `sample_file` (or length-1) providing the elasticity of taxable income for each observation in `sample_file`; $$\frac{\Delta z / z}{\Delta \tau / (1 - \tau)}$$ where $z$ is taxable income and $\tau$ is tax payable. For example, if, for a given taxpayer, the tax settings would otherwise result in a 2% decrease of disposable income under the tax settings to be modelled, and `elasticity_of_taxable_income` is set to 0.1, the `Taxable_Income` is reduced by 0.2% before the tax rates are applied. If `NULL`, an elasticity of 0 is used.
ordinary_tax_thresholds	A numeric vector specifying the lower bounds of the brackets for "ordinary tax" as defined by the Regulations. The first element should be zero if there is a tax-free threshold.
ordinary_tax_rates	The marginal rates of ordinary tax. The first element should be zero if there is a tax-free threshold. Since the temporary budget repair levy was imposed on a discrete tax bracket when it applied, it is not included in this function.
medicare_levy_taper	The taper that applies between the `_lower` and `_upper` thresholds.
medicare_levy_rate	The ordinary rate of the Medicare levy for taxable incomes above `medicare_levy_upper_threshold`.
medicare_levy_lower_threshold	Minimum taxable income at which the Medicare levy will be applied.
medicare_levy_upper_threshold	Minimum taxable income at which the Medicare levy will be applied at the full Medicare levy rate (2% in 2015-16). Between this threshold and the `medicare_levy_lower_threshold`, a tapered rate applies, starting from zero and climbing to `medicare_levy_rate`.
medicare_levy_lower_sapto_threshold, medicare_levy_upper_sapto_threshold	The equivalent values for SAPTO-eligible individuals (not families).
medicare_levy_lower_family_threshold, medicare_levy_upper_family_threshold	The equivalent values for families.
medicare_levy_lower_family_sapto_threshold, medicare_levy_upper_family_sapto_threshold	The equivalent values for SAPTO-eligible individuals in a family.
medicare_levy_lower_up_for_each_child	The amount to add to the `_family_threshold`s for each dependant child.
lito_max_offset	The maximum offset available for low incomes.
lito_taper	The taper to apply beyond `lito_min_bracket`.
lito_min_bracket	The taxable income at which the value of the offset starts to reduce (from `lito_max_offset`).
lito_multi	A list of two components, named `x` and `y`, giving the value of a replacement for `lito` at specified points, which will be linked by a piecewise linear curve between the points specified. For example, to mimic LITO in 2015-16 (when the offset was \$445 for incomes below \$37,000, and afterwards tapered off to \$66,667), one would use `lito_multi = list(x = c(-Inf, 37e3, 200e3/3, Inf), y = c(445, 445, 0, 0))`. The reason the argument ends with `multi` is that it is intended to extend the original parameters of LITO so that multiple kinks (including ones of positive and negative gradients) can be modelled.
Budget2018_lamington	logical; default is `FALSE`. If set to `TRUE`, calculates the amount that taxpayers would be entitled to under the Low and Middle Income Tax Offset as contained in the 2018 Budget.
Budget2019_lamington	logical; default is `FALSE`. If set to `TRUE`, calculates the amount that taxpayers would be entitled to under the Low and Middle Income Tax Offset as amended by the 2019 Budget.
Budget2018_lito_202223	The LITO proposed for 2022-23 proposed in the 2018 Budget.
Budget2018_watr	logical; default is `FALSE`. If set to `TRUE`, calculates the "Working Australian Tax Refund" as proposed in the Labor Opposition Leader's Budget Reply Speech 2018.
Budget2019_watr	logical; default is `FALSE`. If set to `TRUE`, calculates the "Working Australian Tax Refund" as revised in the Labor Opposition Leader's Budget Reply Speech 2019.
sapto_eligible	Whether or not each taxpayer in `sample_file` is eligible for `SAPTO`. If `NULL`, the default, then eligibility is determined by `age_range` in `sample_file`; i.e., if `age_range <= 1` then the taxpayer is assumed to be eligible for SAPTO.
sapto_max_offset	The maximum offset available through SAPTO.
sapto_lower_threshold	The threshold at which SAPTO begins to reduce (from `sapto_max_offset`).
sapto_taper	The taper rate beyond `sapto_lower_threshold`.
sapto_max_offset_married, sapto_lower_threshold_married, sapto_taper_married	As above, but applied to members of a couple
sbto_discount	The `tax_discount` in `small_business_tax_offset`.
cgt_discount_rate	(numeric(1)) The capital gains tax discount rate, currently 50%.
calc_baseline_tax	(logical, default: `TRUE`) Should the income tax in `baseline_fy` be included as a column in the result?
return.	What should the function return? One of `tax`, `sample_file`, or `sample_file.int`. If `tax`, the tax payable under the settings; if `sample_file`, the `sample_file`, but with variables `tax` and possibly `new_taxable_income`; if `sample_file.int`, same as `sample_file` but `new_tax` is coerced to integer.
clear_tax_cols	If `TRUE`, the default, then `return. = sample_file` implies any columns called `new_tax` or `baseline_tax` in `sample_file` are dropped silently.
warn_upper_thresholds	If `TRUE`, the default, then any inconsistency between `baseline_fy` and the upper thresholds result in a warning. Set to `FALSE`, if the `lower_threshold`s may take priority.
.debug	Return a data.table of `new_tax`. Experimental so cannot be relied in future versions.

Examples


library(data.table)
library(hutils)

# With new tax-free threshold of $20,000:
if (requireNamespace("taxstats", quietly = TRUE)) {
  library(taxstats)
  library(magrittr)

  model_income_tax(sample_file_1314,
                   "2013-14",
                   ordinary_tax_thresholds = c(0, 20e3, 37e3, 80e3, 180e3)) %>%
    select_grep("tax", "Taxable_Income")

}
#> 
#> Attaching package: 'magrittr'
#> The following objects are masked from 'package:testthat':
#> 
#>     equals, is_less_than, not
#>         Untaxed_othr_pnsn_amt Cost_tax_affairs_amt Spouse_adjusted_taxable_inc
#>      1:                     0                    0                           0
#>      2:                     0                  336                           0
#>      3:                     0                    0                           0
#>      4:                     0                  138                       19914
#>      5:                     0                   61                           0
#>     ---                                                                       
#> 258770:                     0                  383                      178171
#> 258771:                     0                    0                      144777
#> 258772:                     0                  241                       24200
#> 258773:                     0                    0                           0
#> 258774:                     0                    0                           0
#>         Taxable_Income baseline_tax   new_tax
#>      1:           4800            0     0.000
#>      2:         126122        36503 36161.970
#>      3:          39742         4655  4313.410
#>      4:         108123        29574 29232.355
#>      5:          85957        21040 20698.445
#>     ---                                      
#> 258770:          24462         1111   769.710
#> 258771:          37055         3701  3359.525
#> 258772:          45024         6530  6188.520
#> 258773:           5134            0     0.000
#> 258774:          46368         7007  6665.640

Arguments

Examples

Contents