Federal Budget Tax Cuts much bigger than first thought, delivering cuts up to $11,800.

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Scott Morrison did his best at explaining the tax cuts on budget night but how many Australians understood exactly what it means to them?  With talk of the Low Income Tax Offset, marginal tax rates changing, and then completely abolishing one of marginal tax rates over a 7 year plan, the only number most can remember is a $10 a week benefit.

Take a closer look at the 7 year tax plan and the cuts are much bigger delivering tax cuts of up to $11,815 for some Australians.

Here is a cheat sheet to see what your tax cut will be.

 

Annual taxable From From From Total
income level 2018-19 2022-23 2024-25 Benefit over
Benefit Period 4 years 2 years 1 year 7 years
               20,000                      –                        –                          –                      –
               30,000                    200                    200                        200                1,400
               40,000                    290                    455                        455                2,525
               50,000                    530                    540                        540                3,740
               60,000                    530                    540                        540                3,740
               70,000                    530                    540                        540                3,740
               80,000                    530                    540                        540                3,740
               90,000                    665                    675                        675                4,685
             100,000                    515                1,125                    1,125                5,435
             110,000                    365                1,575                    1,575                6,185
             120,000                    215                2,025                    2,025                6,935
             130,000                    135                2,025                    3,475                7,065
             140,000                    135                2,025                    2,925                7,515
             150,000                    135                2,025                    3,375                7,965
             160,000                    135                2,025                    3,825                8,415
             170,000                    135                2,025                    4,275                8,865
             180,000                    135                2,025                    4,725                9,315
             190,000                    135                2,025                    5,975              10,565
             200,000                    135                2,025                    7,225              11,815

 

All figures represent dollars.

Why not increase the financial savviness of those around you – pay it forward and pass on these tips to your family, friends and kids.  

Olivia Maragna is the co-founder of Aspire Retire Financial Services and is a respected  financial expert.  Olivia’s advice is general in nature and readers should seek their own professional advice before making any financial decisions.

You can follow Olivia on Facebook or Twitter at https://twitter.com/oliviamaragna

 

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