Early Tax Cuts for Australians to Drive Economic Recovery
Over 11 million Australians will be given tax relief to aid in the economic recovery from the coronavirus
pandemic, in accordance with announcements made in the October federal budget.
This means the 19% tax bracket will increase from $37k to $45k, whilst the 32.5% tax bracket will increase from $90k to $120k.
Table of Individual Tax Rates 2020-21
|Taxable income||Tax on this income|
|0 – $18,200||Nil|
|$18,201 – $45,000||19 cents for each $1 over $18,200|
|$45,001 – $120,000||$5,092 plus 32.5 cents for each $1 over $45,000|
|$120,001 – $180,000||$29,467 plus 37 cents for each $1 over $120,000|
|$180,001 and over||$51,667 plus 45 cents for each $1 over $180,000|
Also, low income tax offsets have been raised from $445 to $700, whilst low to middle income earners will be getting $1080 as a one-off tax benefit for the 2021 financial year.
Those on $100k salary will receive a tax reduction of $29 on a weekly basis, whilst a $47 reduction would be seen by those on $120k. Annually, those on $80k will pay $1080 less in tax.
These tax cuts will aid in our economic recovery from the Covid-19 pandemic, by facilitating extra spending, thereby injecting money into our economy.
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