Clarification on Taxation

Re: Elected members upset that new tax rate hits MP's pockets. "The Prime Minister used the Cabinet Ministers' parliamentary salaries as an example. He said that a minister's Basic Salary was $32,000. The first $7,400 was tax-free, therefore the remaining $24,600 was taxed 10 per cent. He said that even if the allowances of $5,400 were added on it was only going to be the remaining figures above $30,000 that would be taxed 20 per cent." Unfortunately this is not the correct explanation of the new taxation. - Frank Schaper