- The Australian government looks set to pass the full $158 billion tax cut package through the Upper House, after gathering the support of key cross bencher Tasmanian Senator Jacqui Lambie.
- If passed, most Australians will save somewhere between $255 and $1,080 depending on how much they earn each year.
- If you earn between $48,000 and $90,000, you’ll receive the full $1,080. The further you get away from that income bracket, generally the smaller your saving will become.
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.
You earn less than $37,000 a year
If you’re in this income bracket, you’ll cop a flat $255 reduction in your tax this year.
You earn between $37,000 – $48,000
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.
You earn between $48,000-$90,000
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.
You earn $90,000-$126,000
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.