More than ten million Australians received some pleasing news as the Federal Budget was announced: they will be receiving a lump sum payment as part of the new tax offsets, set to go into play from July.
Here’s the basic breakdown of how it will affect you:
If you earn up to $37,000, your tax will be reduced by $200 – paid in a lump sum after filing your return. The average tax paid in this bracket is $1,900 a year, so it’s a decent cut.
Those between $37K – $90K will receive a $530 reduction, paying an average of $10,400 a year (keep in mind, this is a bracket that houses 4.4 million people, so if you are in the lower end of this earnings bracket, you will pay a loss less than the average).
For those earning over $90,000, the tax relief reduces to zero above $125,000.
The budget has also banned ‘exit fees’ when switching super accounts, a predatory practice that costs Australians over $37 million each year. Funds will also be banned from charging those under 25 for life insurance policies that are tied into their super.
For a full run down, hit up Business Insider.
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