More money in the pocket
The Government proposed a seven-year personal tax cut package that, if legislated, will leave millions of Australians with more money in their pocket.
Tax rebate for low and middle income earners
From 1 July 2018 to 30 June 2022, low and middle income earners will receive a tax rebate of up to $530. This is in addition to the existing Low Income Tax Offset (LITO).
|
Income |
Tax Benefit |
|---|---|
|
$37,000 or less |
Up to $200 per year |
|
$37,001 to $47,999 |
Between $200 and $530 per year |
|
$48,000 to $90,000 |
$530 per year |
|
$90,001 to $125,333 |
Starting at $530 per year, gradually reducing to $0 |
|
$125,334 or above |
$0 |
When the rebate ceases on 30 June 2022, the existing LITO will be increased from a maximum of $445 to a maximum of $645, depending on your income.
Changes to personal income tax brackets
From 1 July 2018 the Government plans to increase the income levels to which the taxation rates apply, which will reduce the overall tax on personal income.
These changes are incremental and will be implemented progressively over a 7 year timeframe.
|
Taxation rate |
Current 2017-18 |
Proposed 2018-19 |
Proposed 2022-23 |
Proposed 2024-25 |
|---|---|---|---|---|
|
0% |
$0 to $18,200 |
$0 to $18,200 |
$0 to $18,200 |
$0 to $18,200 |
|
19% |
$18,201 to $37,000 |
$18,201 to $37,000 |
$18,201 to $41,000 |
$18,201 to $41,000 |
|
32.5% |
$37,001 to $87,000 |
$37,001 to $90,000 |
$41,001 to $120,000 |
$41,001 to $200,000 |
|
37% |
$87,001 to $180,000 |
$90,001 to $180,000 |
$120,001 to $180,000 |
- |
|
45% |
$180,001 or above |
$180,001 or above |
$180,001 or above |
$200,001 or above |
More information can be found at https://budget.gov.au/2018-19/index.html and an income tax calculator can be found at https://www.budget.gov.au/index.htm so you can explore how these changes will affect you in total over the seven years.
