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Income tax cuts are coming, according to the Government's 2018 budget.
It wants to introduce a massive seven-year personal tax cut package, but the Government faces multiple elections and Senate crossbench negotiations before its vision can be realised.
If the changes are passed, millions of Australians will benefit from next year's proposed changes.
From next July, those who earn up to $37,000 will see their tax bill reduce by $200.
The offset increases incrementally for those earning between $37,000 and $48,000, before the maximum offset of $530 is applied to those earning between $48,000 and $90,000.
The benefit then gradually decreases to zero at a taxable income of about $125,000.
There will also be a measure to combat bracket creep, introduced in stages.
From July next year, people earning between $87,000 and $90,000 will move back into the lower tax bracket and pay 32.5 per cent instead of 37 per cent in tax.
The plan still needs the support of the Senate before it comes into law.
| Income | Tax cut from 2018-19 | Tax cut from 2022-23 | Tax cut from 2024-25 | |||
|---|---|---|---|---|---|---|
| Per week | Per year | Per week | Per year | Per week | Per year | |
| $20,000 | None | None | None | None | None | None |
| $40,000 | $5.58 | $290 | $8.75 | $455 | $8.75 | $455 |
| $60,000 | $10.19 | $530 | $10.38 | $540 | $10.38 | $540 |
| $80,000 | $10.19 | $530 | $10.38 | $540 | $10.38 | $540 |
| $100,000 | $9.90 | $515 | $21.63 | $1,125 | $21.63 | $1,125 |
| $150,000 | $2.60 | $135 | $38.94 | $2,025 | $64.90 | $3,375 |
| $200,000 | $2.60 | $135 | $38.94 | $2,025 | $138.94 | $7,225 |
| $1,000,000 | $2.60 | $135 | $38.94 | $2,025 | $138.94 | $7,225 |
Topics: government-and-politics, business-economics-and-finance, money-and-monetary-policy, work, budget, tax, australia
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