The Government has introduced a massive seven-year personal tax cut package that will mean millions of Australians benefit from next year's proposed changes.
From next July, those who earn up to $37,000 will see their tax bill reduce by $200.
The offset increases incrementally for those earning between $37,000 and $48,000.
The maximum offset of $530 is applied to those earning between $48,000 and $90,000.
The benefit then gradually decreases to zero at a taxable income of about $125,000.
There will also be a measure to combat bracket creep, introduced in stages.
From July next year, people earning between $87,000 and $90,000 will move back into the lower tax bracket and pay 32.5 per cent instead of 37 per cent in tax.
In 2022, the top threshold of the lower tax bracket would be increased from $37,000 to $41,000, meaning more earners would fall inside the 19 per cent tax rate bracket.
By 2024, everyone earning between $41,000 and $200,000 would pay the 32.5 per cent tax rate.
That means a big tax cut for those earning more than $90,000, who would have paid 37 per cent.
| Income | Tax cut from 2018-19 | Tax cut from 2022-23 | Tax cut from 2024-25 | |||
| Per week | Per year | Per week | Per year | Per week | Per year | |
| $20,000 | None | None | None | None | None | None |
| $40,000 | $5.58 | $290 | $8.75 | $455 | $8.75 | $455 |
| $60,000 | $10.19 | $530 | $10.38 | $540 | $10.38 | $540 |
| $80,000 | $10.19 | $530 | $10.38 | $540 | $10.38 | $540 |
| $100,000 | $9.90 | $515 | $21.63 | $1,125 | $21.63 | $1,125 |
| $150,000 | $2.60 | $135 | $38.94 | $2,025 | $64.90 | $3,375 |
| $200,000 | $2.60 | $135 | $38.94 | $2,025 | $138.94 | $7,225 |
| $1,000,000 | $2.60 | $135 | $38.94 | $2,025 | $138.94 | $7,225 |
