Saturday, July 20, 2024
7.3 C
Kilmore
- Advertisement -

Division over July tax cuts: What will they mean for you?

Popular Stories

Grace Frost
Grace Frost
Hi, I'm Grace Frost. I was honoured to report for the Review as their Digital Journalist from mid-2022 to the beginning of 2024. Ive since made a move to the Herald Sun.

The Federal Government is delivering a tax cut starting on July 1, designed to provide cost-of-living relief to middle Australia while making the tax system fairer.

About 76,000 people will receive a tax break in July under Labor’s better tax cuts announced by Prime Minister Anthony Albanese and Treasurer Jim Chalmers.

Member for McEwen Rob Mitchell said every taxpayer would receive a tax cut.

- Advertisement -

“We’re delivering more help for working families and more help for Australians already under the pump from the cost-of-living, putting cash back into people’s pockets when they need it most,” he said.

“Our tax cuts are about ensuring more workers in McEwen can keep more of what they earn because we know that will take pressure off people doing it tough.”

The average tax cut is estimated to be about $1500.

All 13.6 million Australian taxpayers will receive a tax cut from 2024-25, with the 19 per cent tax rate reduced to 16 per cent and the 32.5 per cent tax rate reduced to 30 per cent.

The average Australian wage earner on $73,000 a year will receive a tax cut of $1504 – while those with an income of $45,000 will receive a $804 cut and others on $150,000 will receive a $3729 reduction.

The threshold above which the 37 per cent tax rate applies has also been increased to $135,000 and the 45 per cent tax rate threshold has been increased to $190,000.

Federal Member for Nicholls Sam Birrell was critical of the cuts and said the government had broken a promise to implement former prime minister Scott Morrison’s proposal.

“Prime Minister Anthony Albanese lied in the lead up to the 2022 election and Labor repeated more than 100 times that the stage three tax cuts would be implemented as legislated under the Coalition Government, with Labor support,” he said.

“The three-stage tax reform was carefully calibrated, and low and middle-income earners received instant tax relief in stages one and two.

“The third stage was designed not only to deliver more tax relief for those earning above $45,000, but to return money already lost to bracket creep.”

Mr Birrell said there were better ways to assist low and middle income earners than embedding disincentives in the tax system.

“Labor ended the Low and Middle Income Tax Offset, which delivered around $1500 to the majority of middle Australia. It appears they are taking with one hand and giving back less with the other,” he said.

“Labor is killing off aspiration in Australia by penalising workers; and it will get worse because Labor’s new tax plan won’t address bracket creep.”

Mr Birrell said while cost-of-living relief was important, it was also long overdue.

“The cost-of-living crisis has been biting hard for over a year and the key cause is inflation,” he said.

“This is a failure of political integrity and common sense tax reform that was designed to ensure a strong Australia keeping up in a competitive world.”

For an estimate on the impact of the tax cuts, use the calculator on the Treasury website at treasury.gov.au/tax-cuts.

- Advertisement -
- Advertisement Mbl -

Related Articles

- Advertisement -

Latest Articles