Federal Government Passes Changes to Stage 3 Tax Cuts

80
1
Federal Government Passes Changes to Stage 3 Tax Cuts

Starting from July 1, all taxpayers will witness a modest increase in their take-home pay. Unlike previous tax adjustments, such as the "LMITO" tax offset, which provided a lump sum during tax time, this change will be reflected in reduced tax deductions each pay cycle.

Under the new tax brackets, individuals will pay no tax on earnings up to $18,200. The tax rates will be 16% for income between $18,201 and $45,000, 30% for income between $45,001 and $135,000, 37% for income between $135,001 and $190,000, and 45% for income exceeding $190,000.

The earlier plan for tax cuts would have primarily benefited high-income earners, with lesser benefits for middle-income workers. This revision signifies a shift towards providing more significant tax relief to those in the lower and middle-income brackets.