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Source: ONE News -
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It has been confirmed today in the government's Budget announcement that personal tax cuts will be made from October 1.
So what does this mean for you? Below are the current tax rates and how they will change under the new Budget.
You can calculate how much tax you will pay on the government's tax guide website
The
current tax rates are as follows:
- Earning up to $14,000 are taxed at 12.5%
- Earnings from $14,001 to $48,000 are taxed at 21%
- Earnings from $48,001 to $70,000 are taxed at 33%
- Earnings of $70,001 and over are taxed at 38%
The
new tax rates are as follows:
- Earning up to $14,000 are taxed at 10.5%
- Earnings from $14,001 to $48,000 are taxed at 17.5%
- Earnings from $48,001 to $70,000 are taxed at 30%
- Earnings of $70,001 and over are taxed at 33%
The calculator shows that a household with one earner on $50,000 a year paying $250 a week in rent or mortgage payments would gain $29.42 from the income tax cut, lose $11.73 from the GST rise, giving a balance of $17.69 a week.
For a household with one earner on $100,000 and rent or mortgage of $500 a week, the gain from the tax cut is $69.81 a week, the loss from GST an estimated $19.85 and the net gain therefore $49.96.
