What's up with these Tax Cuts?

Overnight, the Senate passed a new Tax Cuts proposal. This means that we're all getting free moneeeeyyyyyyyy...

Well... Not exactly...

It actually means we'll get a "tax relief" benefit on our tax returns that we're about to do (or have just done for the super organised).

The maximum benefit per person is $1080. How is it calculated though? Let's break it down.

If you earned:

  • Under $37,000 – you will get $255 back.
  • Between $37,000 and $48,000 – $255 back plus 7.5% of what is over $37,000 (so that’s between $255 and $1,080).
  • Between $48,000 and $90,000 – $1,080 back, flat. No calculations needed.
  • Between $90,000 and $126,000 – $1,080 back but minus 3% of what is over $90,000 (so between $1,080 and $0).
  • Over $126,000 – zero.

 

Still too hard to work out? Let's make it even easier... GO HERE to the ATO's official calculator, enter your annual income and wham-bam-thank you ma'am, that's how much relief you're getting this tax return!