The tax savings over a four year period can be revealed after Treasurer Josh Frydenberg handed down his budget on Tuesday evening
Workers on a salary of about $90,000 stand to benefit the most from the Morrison government’s tax cuts in terms of dollar figures.
Middle-income earners paid at about that level will receive $7,020 in tax relief in total over the four years from 2018 to 2022, federal budget documents said.
A working couple who both make $90,000 will be rewarded with $14,040 in tax cuts in total over that period when compared with the 2017 tax tables.
Low-income earners on $40,000 will have saved $3,080 in total.
Higher-income earners on $120,000 will get $6,720 in tax relief over the same period.
Those earning more than $140,000 will take home an extra $5,400 when compared with tax settings from 2017-18.
These numbers come as a result of the federal government’s flagship tax policy announced tonight, combined with the permanent relief the government introduced last October.
Treasurer Josh Frydenberg announced on Tuesday night that the government will extend the lower and middle-income tax offset for ten million Australians for a further year.
Workers will receive a $1,080 offset when they submit their tax returns for the 2021-22 financial year.
The wealthiest Australians will be rewarded for their patience in years to come, with the Morrison government planning to permanently lower tax brackets again in 2024.
After the ‘stage three’ tax plan kicks in some 95 per cent of Australians will pay 30 per cent tax or less, official documents said.
‘Australia’s economic recovery is now underway and we must keep the momentum moving,’ Mr Frydenberg said in his speech this evening.
Middle-income earners will receive up to $7,020 in tax relief between 2018 and 2022, this year’s budget has confirmed
Ten million Aussies get tax cuts worth $1,080 as thousands of free training places and extra cash for your super are unveiled in the Federal Budget – but you won’t be able to go overseas until 2022
Ten million Australians will get a big tax cut worth up to $1,080 as part of a federal budget designed to cement the nation’s rapid recovery from last year’s Covid-induced recession.
But the sweetener comes alongside grim news that overseas holidays will be off the cards until mid-2022 except for travel bubbles with safe countries such as New Zealand as the deadly disease continues to ravage the world.
The budget’s flagship policy is an extension of the lower and middle-income tax offset – which gives Aussies who earn less than $126,000 a big boost when they submit their tax returns.
Australians earning between $48,000 and $90,000 will get the maximum amount of $1,080 while those earning between $37,000 and $48,000 and between $90,000 and $126,000 will get a smaller amount depending on their salary.
Amie Frydenberg hands her children Gemma and Blake a piece of chocolate as they listen to their dad Australian Treasurer Josh Frydenberg handing down his third Federal Budget
Combined with the permanent tax cuts announced in the October budget, it means an Aussie earning $90,000 will pay $7,020 less tax over the four years from 2018 to 2022. Those earning between $60,000 and $80,000 will pay $6,480 less compared to 2017 tax settings.
Working parents will get a further boost as the budget slashes childcare fees for second and subsequent children and scraps the maximum subsidy amount, which will save 250,000 families an average of $2,200 a year.
Meanwhile, some 300,000 Australians who earn less than $450 a month from a single employer will get superannuation payments for the first time and thousands of young Aussies will have access to free training courses under an extension of the JobTrainer scheme.
In his speech in parliament on Tuesday night, Treasurer Josh Frydenberg warned ‘the pandemic is far from over’ with the world recording 800,000 cases a day, which is why hotel quarantine will be in place for another year even with everyone offered a vaccine by December.
But with 75,000 more Aussies in jobs than before the pandemic, the Treasurer said Australia was ‘well on the way to recovery’.
‘Jobs are coming back, the economy is coming back, Australia is coming back,’ he declared.