The latest news from the Australian Government is being welcomed as savings identified for more than 10 million Australians.
The latest personal tax cut plan is set to benefit many individuals by as much as up to $530 in the next tax year. As long as the proposed changes are passed by the Senate, they are going to be delivered over three stages.
The first stage is specifically targeted and low- and middle-income earners, with future, proposed changed in 2022 and 2024 set to benefit those individuals in higher income brackets. Overall, the plan is set to benefit all income classes, but with those on a lower income set to see a much quicker return on this change.
Following the news of the 2018 budget, according to the Treasurer, Scott Morrison, more people will be paying less tax overall.
‘’94% of taxpayers in Australia will have to pay no more than 32.5 cents per dollar earned.’’
If the system was to remain unchanged, then this figure would be much lower, at just 63%.
Despite this promising statement, the treasurer has repeatedly refused to release the specific figures that support his claims. In order for the plan to be passed, it needs to be approved by parliament. However, there are many Senate crossbenchers who have suggested they will resist the insistence of a quick deadline, which could further delay to the introduction of the first stage that could help millions of Australians pay up to $530 less on their 2019 tax bills.