Yesterday, the Senate gave the all-clear to the Turnbull government’s long-term plan to reduce income tax rates for the majority of Australians, the first stage of which will begin in less than two weeks on July 1. Now, let’s have a look at the changes — and how much you’ll potentially save.
Currently, there are four tax rates above the $18,200 low-income threshold: 19 per cent ($18,201-$37,000), 32.5 per cent ($37,001-$87,000), 37 per cent ($87,001-$180,000) and 45 per cent ($180,001+).
The end game is to get rid of the 37 per cent rate and move those affected into the 32.5 per cent bracket. While this won’t happen until 2028, some pieces will be implement in the 2018-19 financial year, with further adjustments occurring over the next ten years.
How To Get Your Tax Refund Faster
We’re heading into the end of financial year and that means it’s time to start getting your stuff together so you can get that all-important refund back – assuming you’re entitled to one. So, what do you need to do to expedite that process? Here’s some advice that can help>
The most immediate change is the shift of the upper end of the 32.5 per cent bracket, from $87,000 to $90,000. This means if you were in that $3000 zone, you’ll have a bit more in your pay starting July 1.
In addition, the government will be providing tax “relief”, in the form of a lump sum, as part of your tax return.If you’re wondering how much you’ll save, as well as the lump sum you’ll be entitled to, consult the table below. Please note the figures here are cumulative.
Cumulative tax paid / tax relief, 2018-19 to 2024-25
| Taxable income: | $30,000 | $50,000 | $80,000 | $90,000 | ||||
| Paid | Relief | Paid | Relief | Paid | Relief | Paid | Relief | |
| 2018-19 | $2197 | $200 | $8017 | $530 | $18,617 | $530 | $22,067 | $665 |
| 2019-20 | $4394 | $400 | $16,034 | $1060 | $37,234 | $1060 | $44,134 | $1330 |
| 2020-21 | $6591 | $600 | $24,051 | $1590 | $55,851 | $1590 | $66,201 | $1995 |
| 2021-22 | $8788 | $800 | $32,068 | $2120 | $74,468 | $2120 | $88,268 | $2660 |
| 2022-23 | $10,985 | $1000 | $40,075 | $2660 | $93,075 | $2660 | $110,325 | $3335 |
| 2023-24 | $13,182 | $1200 | $48,082 | $3200 | $111,682 | $3200 | $132,382 | $4010 |
| 2024-25 | $15,379 | $1400 | $56,089 | $3740 | $130,289 | $3740 | $154,439 | $4685 |
Business Insider Australia
| Taxable income: | $120,000 | $160,000 | $200,000 | |||
| Paid | Relief | Paid | Relief | Paid | Relief | |
| 2018-19 | $34,217 | $215 | $49,897 | $135 | $67,097 | $135 |
| 2019-20 | $68,434 | $430 | $99,794 | $270 | $134,194 | $270 |
| 2020-21 | $102,651 | $645 | $149,691 | $405 | $201,291 | $405 |
| 2021-22 | $136,868 | $860 | $199,588 | $540 | $268,388 | $540 |
| 2022-23 | $169,275 | $2885 | $247,595 | $2565 | $333,595 | $2565 |
| 2023-24 | $201,682 | $4910 | $295,602 | $4590 | $398,802 | $4590 |
| 2024-25 | $234,089 | $6935 | $341,809 | $8415 | $458,809 | $11,815 |
Business Insider Australia
37 Tax Tips For Australia’s Most In-Demand Jobs
The end of the financial year is approaching and that can only mean one thing; it’s nearly time to lodge your tax return. Now is a great time to take stock of all the money you’ve spent on work-related items during the course of the year.
Here’s how much income tax you will save from next month [Business Insider Australia]
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