How the Federal Budget effects your Income Tax

The treasurer has released the latest Federal budget with a great message “we are back in the black and back on track”. The budget has proven to be a positive one for Individuals with low to medium incomes.

We won’t bore you with all the budget stuff - just the important stuff that matters to you.

Great news for low to medium income earners

Tax reductions are coming your way, and that means *cha-ching* bigger tax refunds.

Here’s who wins:

Taxable Income of $37000 or less will receive a tax reduction up to $225

Taxable Incomes between $37,000 to $48,000 can receive a maximum offset of $1080

Taxable income between $48,000 to $90,000 can receive a maximum offset of $1080

Taxable income between $90,000 to $126,000 will receive a reduction rate of 3 cents per dollar

What does this mean for you?

If you are earning an income between these ranges, you are going to be getting a nice juicy refund put into your bank account.

Further from this exciting news, was the release of the new tax brackets changing by 2024, we won’t go into detail about this, because it will probably change before then *politics*.

Medicare Levy

The other great news is that the Medicare Levy low-income thresholds for singles, families, seniors and pensioners will be increased this year.

The new thresholds will be:

Singles $22,398
Families $37,794
Single Seniors and Pensioners $35,418
Family Seniors and Pensioners $49,304

What does this mean for you and why does it matter?

If you fall under these thresholds it means you won’t have to pay the full or all of the 2% Medicare Levy which is included on top of the tax you currently pay.

Basically, more money in your pocket and less in the Governments pocket. Woo!

So, that’s the great budget news that matters!

Get the best possible tax refund... GUARANTEED.

Do your tax online in as little as 10 minutes and get your refund fast. 

Note that the information provided is general in nature and subject to change, please contact one of our professionals who can evaluate your circumstances and provide more accurate advice to your current situation.