Australia’s tax cuts to kick in from Nov 16
Australians are set to receive a major tax cut next week, in a move by the federal government to boost the country’s economy as it reels from the impact of Covid-19.
Under the new adjustments, the 32.5% tax rate threshold will be raised from A$90,000 (USD$ 65,596) to A$120,000 (US$87,461), while the 19% tax rate threshold will be raised from A$37,000 (US$26,967) to A$45,000 (US$32,798).
The government has also provided additional targeted support to low and middle-income Australians with low-income tax offsets increased from A$445 (US$324) to A$700 (US$510).
From November 16, all employers will have to ensure that the cuts are passed on to their staff.
Low and middle-income Australians will also receive a one-off additional benefit of up to A$1,080 (US$787) when they complete their annual tax return after July 1 next year.
The tax relief package is expected to benefit over 11 million Australians, and was revealed during the country’s budget announcement last month.
It was initially scheduled for the 2022-2023 financial year, but was fast-tracked through parliament due to the impact of the pandemic on the economy.