Tax Cut

 

The government delivered tax cut package of $158 billion plan on 4 July 2019 over the following three stages:

- FY2018 – 2019 Tax cut applies to people earning less than $126,000 unevenly

Below $37,000, tax cut $255

Between $37,001 - $48,000, tax cut $255 plus 7.5% of what is over $37,000

Between $48,001 - $90,000, tax cut 1,080 flat

Between $90,001 - $126,000, tax cut $1,080 less 3% of what is over $90,000

Over $126,000 – nil

You will get the tax cut when you lodge your tax return for 2019. Tax cut comes as a form of tax offset, so if you don’t have any tax to pay, say your income is $20,000, you won’t get $255 tax refund in your bank account. The cut is meant to reduce the tax amount you are paying.

A lot people do not realise back in 2018 – 2019 budget, the government already announced tax cut for low- and middle-income earner up to $530. Last week’s bill is more generous than the previous one.

The stage one tax cut will last for 4 years from 2019 till 2022.

- On 1 July 2022, the 2nd stage of tax cut will take into effect which has several measures.

37% tax bracket will be lifted from current $90,000 to $120,000

19% tax bracket will be lifted from current 37,000 to $41,000

- Stage 3 tax cut starts from 1 July 2024 which will see people earning between $45,000 - $200,000 to have flat rate of 30%.

Cordner Advisory - Your Business Advisory, Accounting & Tax Specialists. Catering for clients all across Australia, from the golden beaches of the Gold Coast and Sunshine Coast to the capital cities such as Brisbane, Sydney and Melbourne

 
Jun Yang - Senior Advisor

Jun has a Bachelor of Business and is CPA qualified. She has been working in the public practice since GST was introduced. Jun has a passion working with small to medium businesses for compliance, budget and management analysis. Jun also speaks both Mandarin and Cantonese.

https://cordner.com.au/team/jun-yang
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