Important temporary notice (2019-02-09): The vignettes do not run on pandoc v2.4 (or take a very long time). Please upgrade to v2.6 (2019-01-30) if building vignettes. You may need to modify the PATH or change the RSTUDIO_PANDOC env. var after installing.
Australian Tax Policy Analysis
## Last change: sysdata.rda at 2019-02-09 16:11:51 (2 mins ago).income_taxCalculates the income tax for a given taxable income and financial year:
## [1] 8547income_tax is designed to work well with the ATO’s sample files. You can obtain the sample files from my repo:
# install.packages("taxstats", repos = "https://hughparsonage.github.io/tax-drat")
library(taxstats)
library(hutils)
library(data.table)
library(magrittr)
library(ggplot2)Simply pass the sample file to .dots.ATO and the complexities of things like Medicare levy and the Seniors and Pensioners Tax Offset are handled for you. For example:
s1314 <- as.data.table(sample_file_1314)
s1314 %>%
.[, tax := income_tax(Taxable_Income, "2013-14", .dots.ATO = s1314)] %>%
.[, .(Taxable_Income, tax)]## Taxable_Income tax
## 1: 4800 0.000
## 2: 126122 36503.970
## 3: 39742 4655.410
## 4: 108123 29574.355
## 5: 85957 21040.445
## ---
## 258770: 24462 1111.710
## 258771: 37055 3701.525
## 258772: 45024 6530.520
## 258773: 5134 0.000
## 258774: 46368 7007.640model_income_tax: modelling changes to personal income taxWhile income_tax is designed to inflexibly return the tax payable as legislated, model_income_tax is designed to calculate income tax when changes are made. For example,
s1314 %>%
# reduce top threshold from 180,000 to 150,000
model_income_tax(ordinary_tax_thresholds = c(0, 18200, 37000, 80000,
150e3),
baseline_fy = "2013-14") %>%
.[, .(Taxable_Income, baseline_tax, new_tax)]## Taxable_Income baseline_tax new_tax
## 1: 4800 0 0.000
## 2: 126122 36503 36503.970
## 3: 39742 4655 4655.410
## 4: 108123 29574 29574.355
## 5: 85957 21040 21040.445
## ---
## 258770: 24462 1111 1111.710
## 258771: 37055 3701 3701.525
## 258772: 45024 6530 6530.520
## 258773: 5134 0 0.000
## 258774: 46368 7007 7007.640projectGiven a sample file, we can project forward a number of years
or to a particular financial year
Together with model_income_tax, this allows us to make point-predictions of future years. The function revenue_foregone prettily prints the resultant revenue:
sample_file_1314 %>%
project_to("2018-19") %>%
model_income_tax(baseline_fy = "2017-18",
ordinary_tax_thresholds = c(0, 18200, 37000, 87000,
150e3)) %>%
revenue_foregone## [1] "$1.8 billion"compare_avg_tax_rates:Create comparison of average tax rates:
lapply(list("30k" = 30e3,
"36k" = 36e3,
"42k" = 42e3),
function(T2) {
model_income_tax(s1718,
baseline_fy = "2017-18",
ordinary_tax_thresholds = c(0,
18200,
T2,
87000,
180e3))
}) %>%
rbindlist(idcol = "id",
use.names = TRUE,
fill = TRUE) %>%
compare_avg_tax_rates(baseDT = .[id %ein% "36k"]) %>%
ggplot(aes(x = Taxable_Income_percentile,
y = delta_avgTaxRate,
color = id,
group = id)) +
geom_hline(yintercept = 0) +
geom_line()
income_tax now gives consistent results modulo the existence of completely empty columns that are inputs for sapto (#158)awote for weekly earningsage_grouper can now have a custom first label prefix, and is much faster when length(age) is large.income_tax now emits a warning when both age and .dots.ATO are provided, indicating that age will be ignored.mutate_ntile and weighted_ntile now use the hutils equivalents. This broke 3 unit tests because of the specific phrasing of some error messages.small_business_tax_offset() is now always positive, fixing the original misinterpretation of the legislation whereby negative business income resulted in a negative offset.*_inflator functions now return correct results for non-standard but supported financial years.inflator no longer fails when to_fy is length > 1 and unordered.mutate_ntile and mutate_weighted_ntile for adding quantile columnsage_pension,carer_paymentcarers_allowanceenergy_supplementfamily_tax_benefitnewstart_allowancepension_supplementrent_assistance the Commonwealth Rent Assistancemodel_rent_assistance as experimental function for modelling changes to rent assistance.youth_allowance() now available, though limitedcompare_avg_tax_rates: create a difference in average tax rates between multiple models and a baseline tax, by percentile.install_taxstats() as a convenient means to install the non-CRAN taxstats dependency.prohibit_vector_recycling() and friends return more informative error messages.income_tax, income_tax_sapto: the default value for fy.year is the current financial yearcpi_inflator, lf_inflator_fy, wage_inflator: if both from_fy and to_fy are missing, the default values become the previous and current financial years respectively. If only one of the two are missing, an error appears.income_tax is about twice as fast since 1.6.0.0: 1.5-2.0s down from 3.0-3.7s on the 100% population (13 million)inflator and cpi_inflator, lf_inflator_fy, and wage_inflator are now much faster when either from_fy or to_fy have more than 100,000 elements:set.seed(19952010)
from_fys <- sample(yr2fy(1995:2010), size = 1e6, replace = TRUE)
microbenchmark(cpi_inflator(from_fy = from_fys, to_fy = "2015-16"))
# Old
Unit: seconds
expr min lq mean median uq
cpi_inflator(from_fy = from_fys, to_fy = "2015-16") 1.519483 1.54438 1.550628 1.549735 1.554507
max neval
1.661502 100
# New
Unit: milliseconds
expr min lq mean median uq
cpi_inflator(from_fy = from_fys, to_fy = "2015-16") 40.71753 41.94061 47.93162 42.93946 48.08461
max neval
191.3497 100yr2fy(x) no longer works for x = 1900L, despite a unit test, for the sake of performance. #> Last change: NAMESPACE at 2018-08-19 14:47:14 (4 mins ago).
#> Unit: milliseconds
#> expr min lq mean median uq max neval cld
#> yr2fy(z) 75 88 98 90 101 161 100 a
#> .yr2fy(z) 274 286 298 297 302 359 100 bUse yr2fy(x, assume1901_2100 = FALSE) if you need the old behaviour.
taxstats1516 is now a suggested dependency.model_income_tax() no longer coerces WEIGHT to integer.lito_multi Permits multiple pieces to the linear offset.Budget2018_lamington The Low And Middle Income Tax Offset proposed in the Budget 2018 budget.Budget2018_lito_202223 The proposed change to LITO from 2022-23.Budget2018_watr The offset proposed by the Opposition the Budget Reply.sbto_discount Allows modification of the small business tax offset.clear_tax_cols By default, old tax columns are deleted.warn_upper_thresholds If changed to FALSE allows the automatic changes to be applied without warning.progressivity() for Gini-based measure of the progressivity of income taxrevenue_foregone() as a convenenience for returning the revenue foregone from a modelled sample file.model_income_tax which attempts to provide every lever of the income tax system that is visible from the tax office’s sample files. Users can model the sample file by changing single parameters to observe the effect on tax collections.small_business_tax_offset: Include the small business tax offset as a standalone function and within income_tax.project and project_to no longer require fy.year.of.sample.file. However, they expect the supplied data.frame to be compatible with the sample file provided. Failling to provide a sample file with the expected number of rows or not providing a sample file with a valid number of rows is a warning, which can be silenced by check_fy_sample_file = FALSE.mgcv was used but not declared in Suggests: Thanks to BDR for reporting.prohibit_vector_recycling to return the maximum permissible length of a list of vectors.lf_trend internal data table used to report the labour force in thousands of persons, as the ABS does. This seemed a bit strange, so now obsValue uses integers (i.e. just the labour force).taxstats to a temporary directory if not already installed, rather than the user or system’s library.income_tax, and related functionsage in income_tax now NULL rather than 42..dots.ATO. However, if .dots.ATO is supplied (and the age variable has not been removed from it), the individuals’ SAPTO eligibility is determined by the age variable in .dots.ATO, rather than setting each individual’s SAPTO to 0.NEWS.md file to track changes to the package.0 ERRORS | 0 WARNINGS | 1-2 NOTEs
NOTES:
Possibly mis-spelled words in DESCRIPTION: … ==> Spellings are correct: ‘repos’ and ‘taxstats’ cannot be quoted as they are within R code.
URLs in angle brackets: ==> Not appropriate since the URL is within R code.
Suggests or Enhances not in mainstream repositories: … ==> Normal due to taxstats dependency
The vignette is quite lengthy and, while it will run on CRAN, requires the installation of ‘taxstats’, a 58 MB source package, each time the package is checked.