Skip to content

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

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…

More

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 taxableFromFromFromTotal
income level2018-192022-232024-25Benefit over
Benefit Period4 years2 years1 year7 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

 

Subscribe to our newsletter

Get perspectives and insights straight to your inbox

aspire-retire-icon

"*" indicates required fields

This field is for validation purposes and should be left unchanged.