This is how much you’ll save if the Australian government’s $158 billion tax cuts pass
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With Tasmanian Senator Jacqui Lambie indicating the government could count on her support in the Upper House, the government’s full $156 billion tax cut bill looks like it will now pass into law.
If it does, this is how much you’re set to save immediately under the first stage of tax cuts based on your annual income.
If you’re in this income bracket, you’ll cop a flat $255 reduction in your tax this year.
The higher up this tax bracket you go, the more you’ll save.
Starting at $255 at the very bottom, your tax saving will gradually increase as your income does.
For example, at $40,000 you’ll save $480 a year.
At $45,000, you’ll save $855 a year and when you earn $48,000, you’ll receive the maximum offset of $1,080.
If your income is inside this bracket, congratulations — you’re one of 4.5 million Australians set to benefit the most from the first set of cuts.
You’ll receive a tax cut worth $1,080 from this year onwards. Dual income families will receive $2,160.
As you start to earn over $90,000, you’ll receive a tapered cut that grows smaller the further you get away from it.
At $100,000 for example, you’ll pocket $915 a year. At $115,000 that shrinks to $465.
Once you’re earning $126,000 or more, you’ll miss out entirely on the offset.