Budget Announcement – Tax Cuts for Individuals and Family Partnerships for 2018-19

Income tax cuts are coming, according to the Government’s 2018 budget.

 

From next July, those who earn up to $37,000 will see their tax bill reduce by $200.

The offset increases incrementally for those earning between $37,000 and $48,000, before the maximum offset of $530 is applied to those earning between $48,000 and $90,000.

The benefit then gradually decreases to zero at a taxable income of about $125,000.

There will also be a measure to combat bracket creep, introduced in stages.

From July next year, people earning between $87,000 and $90,000 will move back into the lower tax bracket and pay 32.5 per cent instead of 37 per cent in tax.

The plan still needs the support of the Senate before it comes into law.

 

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