What do the recent tax cuts mean for you?
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.