What the Coalition’s proposed tax cuts mean for you
Prime Minister Scott Morrison’s tax handout could be passed this week — meaning millions of us are about to get a nice cash boost.
Here’s what you need to know.
WHO GETS THEM?
More than 10 million workers will receive a tax offset to some degree, while around 4.5 million will score the full lump sum.
Under the package, all low and middle-income earners making less than $126,000 a year will qualify.
HOW MUCH WILL YOU GET?
Under the government’s proposal, a low and middle-income earner tax offset will be doubled for the 2018/19 and 2019/20 financial years.
It means singles can get up to $1080, while dual-income households could net up to $2160 per year.
WHEN WILL IT ARRIVE?
For those who have already lodged a tax return, they should arrive after July 16th.
For the rest of us who are less organised, the payments will arrive over the coming months.
HOW DO I GET IT?
It will show up automatically in your accounts — meaning you won’t need to do anything to claim it, even if you’ve already lodged your tax return before the package officially passes.
WHAT’S THE HOLD UP?
The Coalition’s tax package comes in three stages.
The first stage is a cash refund of up to $1080 after individual taxpayers file their tax return.
The second, aimed at fighting “bracket creep”, would raise the top limit of the 19 per cent tax bracket from $41,000 to $45,000 from 2022/23, while the low-income offset would also be increased from $645 to $700.
Stage three involves dropping the 32.5 per cent tax rate to 30 per cent from July 1, 2024 — meaning all workers earning between $45,000 and $200,000 would be on the 30 per cent rate.
The Coalition claims that the package would mean an Aussie with an average taxable income of around $60,000 would be more than $15,000 better off over a decade.
But while Labor supports the first two stages — and wants the second stage to be brought forward — it does not support the third, arguing the rollout date is too far off for the parliament to decide on now.
– Alexis Carey (NEWS.COM)
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Past performance is not an indicator of future performance. The information provided in this article is general in nature and does not take into account your particular investment objectives, financial situation or insurance needs; we, therefore, recommend you seek advice tailored to your individual circumstances before making any specific decisions. Dobbrick Financial Services and its advisers are Authorised Representatives of Fortnum Private Wealth Ltd ABN 54 139 889 535 AFSL 357306. Innova Asset Management is a Corporate Authorised Representative of Fortnum Private Wealth Ltd ABN 54 139 889 535 AFSL 357 306.