- Posted by BWA Accountants
The 2018-19 budget was handed down on Tuesday night. Here’s your re-cap of the proposed financial year to come.
Workers are the big winners in this year’s budget with more than 10 million people benefitting from tax cuts. The following changes will take effect at 1 July 2018:
· Taxpayers earning up to $37,000 will see their tax bill reduced by a $200 offset.
· For those earning between $37,000 and $48,000 this offset increases incrementally by 3 cents in the dollar up to the maximum offset of $530.
· The 4.4 million Australians earning between $48,000 and $90,000 will be eligible for the maximum offset of $530. This will be available as a non-refundable tax offset and available for the next four financial years.
· Individuals earning between $87,000 and $90,000 will move back into the lower tax bracket, paying 32.5% rather than 37% in marginal tax.
· 1 July 2018 will also see the introduction of a new Childcare package. Families with combined earnings of up to $187,000 will no longer having a subsidy limit.