New Tax Cuts

The Government has introduced new immediate tax relief for low-and-middle‑income earners of up to $1,080 for singles or up to $2,160 for dual income families to ease the cost of living.

The offset will be available for the 2018-19, 2019-20, 2020-21 and 2021-22 income years.

Rates in 2017-18 Thresholds in 2017-18 New Rates in 2024-25 New Thresholds in 2024-25
Nil Up to $18,200 Nil Up to $18,200
19 per cent $18,201 - $37,000 19 per cent $18,201 - $45,000
32.5 per cent $37,001 - $87,000 30 per cent $45,001 - $200,000
37 per cent $87,001 - $180,000  -   - 
45 per cent Above $180,000 45 per cent Above $200,000
Low income tax offset in 2017-18 Up to $445 Low income tax offset in 2024-25 Up to $700

 

Individuals with taxable incomes up to $37,000 will have their tax reduced by up to $255. This will increase incrementally for those earning between $37,000 and $48,000. The maximum offset of $1,080 will be available to taxpayers with taxable incomes between $48,000 and $90,000. The offset then gradually reduces to zero at a taxable income of $126,000. The offset will be received as a lump sum on assessment after individuals lodge their tax returns.

The Government have created a Tax Relief Estimator to help you better understand the tax relief you may receive when completing your personal income tax return for the 2018-19 year. 

Want to learn more about the budget?

Check out our 2019 budget summaries for the below categories:

Business
Superannuation
Economy
Social Security & Family Assistance
Other

 

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