What do the re­cent tax cuts mean for you?

Hills to Hawkesbury Living Magazine - - Local Poitics -

On the 4th of July the Parliament passed three stages of the govern­ment’s tax plan. Here is a quick break­down of the changes and how they af­fect you.

The first stage of th­ese tax cuts have al­ready come into ef­fect. This stage af­fects more than 10 mil­lion Aus­tralians, earn­ing up to $126,000, who will re­ceive up to $1,080 for the 2018-19 fi­nan­cial year.

In fact, 70,492 tax­pay­ers in Berowra will ben­e­fit from this stage of tax cuts, with 24,694 re­ceiv­ing the full tax off­set of $1,080.

The sec­ond stage of the in­come tax cuts in­creases the 19% in­come tax rate thresh­old to $45,000 from $37,000. This means that if you earn less than $45,000, from 2022-23 fi­nan­cial year, you will pay just 19 cents in the dol­lar in tax.

The third and fi­nal stage of the tax cuts is the stage that pro­vides Aus­tralians and in­come earn­ers in our com­mu­nity a greater abil­ity to plan for their fu­ture. In­come earn­ers earn­ing be­tween $45,000 and $200,000 will only be taxed 30 cents in the dol­lar from 2024-25, a de­crease from 37 cents in the dol­lar. This change will meant that 94% of Aus­tralians will pay no more than 30 cents in the dol­lar.

The govern­ment’s tax plan lets you keep more of your own money and pro­vides Berowra fam­i­lies with the cer­tainty they need to plan for their fu­ture.

The tax cuts are an im­por­tant step strengthen our econ­omy and to de­liver on the promises we took to the elec­tion.

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