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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