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Australians to Receive Tax Cuts

The Australian Government approved $17.8 billion in personal tax cuts, quickly pushing through measures announced last week to support the country’s economy. More than 11 million Australians and 1 million businesses will begin receiving tax relief within weeks after the measures have been approved.

The Government will bring forward its planned tax cuts meaning millions of Australians will have more money in their pockets, potentially from the end of October. These tax cuts were scheduled to start in July 2022 but will be brought forward and backdated to July this year.

• Under the plan, the upper limit of the 19% personal income tax bracket will rise from $37,000 to $45,000 and the 32.5% marginal tax rate upper threshold will lift from $90,000 to $120,000.
• The tax plan means people who earn between $45,000 and $90,000 will take home an additional $1,080 this financial year.
• Workers who earn more than $90,000 will take home up to $2,565 extra, with people earning more than $120,000 receiving the maximum benefit.
• The low and middle-income tax offset, currently worth $255 for a worker on $37,000 and $1,080 for those earning between $48,001 and $90,000, will also remain.

The Government hopes Australians will spend the additional cash, to help offset the economic activity lost this year.

Don’t forget if you are not registered with a Tax Agent, your 2020 income tax return is due to be lodged by 31st October 2020. Penalties may apply if you lodge late and interest can be charged on outstanding tax payments by the ATO.

If you need help with your taxes, get in touch with us so we can sort it out for you. Our fees start from $220 per return.

Contact us if you have any questions.