Below is a table showing a comparison of the tax paid by an individual under the existing tax system against the tax paid under a Debit Tax system. For this exercise - let's make 3 assumptions:

• Annual income is $100,000.
• Annually $9,600 (i.e. $800 per month) is spend on food.
• The rest of the money is spent.

Firstly, let's calculate the tax that would be payable on personal income from the ATO web site here.

On the money that is earned, the comparative situation is given below. As explained, the Debit tax does not apply to income received.

On the money that is spent, the comparative situation is given below. In this scenario, the Debit Tax is applicable.

Once we put all of the taxes together - we get the situation below. The tax saving for the individual is an amazing $33,790. This additional disposable income will result in the economy receiving a major stimulus, with an increase in employment.