(3min read)
The federal government has rewritten the Stage 3 tax cuts, six years in the making. They're shaking things up and it could mean more money in your pocket. In this blog:
- Discover how the new tax cuts could affect you
- Learn about the government's reasoning behind this change
- Understand the potential long-term implications
The government's new plan means lower income earners will benefit more, with most taxpayers now getting a tax cut of up to $804. "Everybody who's paying tax and is working will get a tax cut," promises the government.
"We can provide more cost of living relief to more people in middle Australia without putting upward pressure on inflation. It's better for women and workforce participation. It's better for nurses and truckies and teachers. And it's better for the economy."
Here's a quick breakdown of how this will affect different income brackets:
- If you earn $30,000, you'll now be $354 better off.
- For those earning $60,000, you'll now get a cut of $804, up from a $375 break.
- Those on a wage of $90,000 to $120,000 will also see a break of $804.
- If you're on a salary of $150,000 or more, you'll still be better off, but less so than under the initial plan.
While these changes are being welcomed by many, some financial analysts warn that people could lose out in the long run when they move into a higher tax bracket. "The cost of living crisis is here now, but what's the effect in three years' time? What's the effect in five years' time? And more importantly, what's it by 2030? Because that's where we should be thinking."
So, while you might see a bit more money in your pocket now, it's important to keep an eye on the future and plan accordingly.
Happy tax planning!
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The information on this website is general in nature and does not consider your personal situation. You should consider whether the information is appropriate to your needs and, where appropriate, seek professional advice.
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