Low and middle income earners, less than $126,000 annually, Australian workers will qualify and receive cash handouts — as the Coalition’s $158 billion tax relief has passed through the Senate with bipartisan support.
More than 10 million working Australians will get up to $1,080 for singles and $2,160 for some families, in tax relief, when they lodge their tax return.
From 2024, the revised tax plan will reduce the 32.5% tax rate to 30%. This will give a permanent tax cut to those earning between $45,000 and $200,000 (70% of the workforce).
The tax offset payment will be received by workers yearly for the next 4 years until 2022, where the new tax schedule comes into effect.
“The dividend from a strong economy is you can spend more money on the essential services that you need.”
“This budget will help secure a better life for all Australians,” Treasurer Josh Frydenberg said.
“This is money that could go towards your monthly mortgage payment, your quarterly power bill or your yearly car insurance.”
“This tax relief will lift household incomes, ease cost of living pressures and boost spending at local businesses,” Mr. Frydenberg said.
- Stage #1 — Individual taxpayers will get a cash refund of up to $1,080 after they filed their tax return.
- Stage #2 — It would raise the top limit of the 19% tax bracket from $41,000 to $45,000 to fight bracket creep in 2022/23. The low income offset would also be increased from $645 to $700.
- Stage #3 — The tax rate of 32.5% will drop to 30% from July 1, 2024. This is for all workers earning between $45,000 and $200,000.
With the tax package, an Aussie with an average taxable income of around $60,000 would be more than $15,000 better off over a decade, the Coalition claims.
Do you need a fast and small fund before the cash handouts arrive?
Once your application is approved, cash is moved into your bank account with repayments easily arranged.