New Australian tax rates revealed: Anthony Albanese’s unveils revamped tax cut plan

#Stage3 #AnthonyAlbanese #taxcut #AustralianLabor #Albanese

New Australian tax rates revealed: Anthony Albanese’s unveils revamped tax cut plan.

Prime Minister Anthony Albanese has revealed exactly how much every Australian will get under his new tax cut plan.
Anthony Albanese has revealed exactly how much every Australian will get under his revamped tax cut plan, confirming workers earning up to $145,000 will pay even less tax than under promised Stage 3 cuts.

Hailing the reforms as delivering bigger tax cuts for the vast majority of workers, the Prime Minister has revealed that average earners on $73,000 will see their tax cuts double to $1504.

Workers will receive more money in their weekly, fortnightly or monthly take-home pay from July, 2024 onwards.

“Australians are under pressure right now and deserve a tax cut,’’ Mr Albanese said in a speech at the national press club.

“And – crucially – just like our other measures assisting people with the cost of living, our tax cuts do not add to inflation,’’
“The Treasury Secretary – and the Treasurer – have both consulted the Governor of the Reserve Bank on our changes, who expects that there are no implications for their inflation forecasts.”

In a nutshell, the new tax plan will introduce the following changes from July, 2024:

● Reduce the 19 per cent tax rate to 16 per cent (for incomes between $18,200 and $45,000)

● Reduce the 32.5 per cent tax rate to 30 per cent (for incomes between $45,000 and the new $135,000 threshold)
Increase the threshold at which the 37 per cent tax rate applies from $120,000 to $135,000

● Increase the threshold at which the 45 per cent tax rate applies from $180,000 to $190,000

The tax cuts will provide relief for 13.6 million Australians, “ensuring that hard working Australians are keeping more of the wages they earn.”

But the documents confirm that people earning more than $200,000 are the biggest losers with a promised tax cut of $9075 slashed to $4529.

The biggest winners are low- and middle-income earners who get a bigger tax cut.

For a part-time shop assistant earning $30,000, the changes will deliver a tax cut of $354.

A nurse earning $90,000, who previously paid $21,517 income tax will now get a tax cut of $1929 or $160 a month.

A dual income couple working full-time with two kids with a combined income of $170,000 will receive a combined tax cut of $3608.

The Government is also increasing Medicare levy low-income thresholds for 2023-24, reducing or eliminating altogether the amount of Medicare levy paid by more than a million Australians on lower incomes.

“We have found a more responsible way to ensure more people get a bigger tax cut to help ease the pressure they are under,’’ Mr Albanese said.

But Liberal leader Peter Dutton warned the voters will not “support a liar as prime minister” and that the ALP caucus had made a “fatal error” in backflipping on an election promise.

“Australians will be bitterly disappointed because they are not voting for someone who is straight up and down, who could tell the truth and stand by what he believed in,’’ Mr Dutton told 2GB radio. “That is not Anthony Albanese.”

“I do think Chalmers and Bill Shorten and others have been rubbing their hands together at the moment thinking that the prime minister has finally destroyed credibility with the Australian public and the Australian public will not support a liar as a prime minister.”

As a result of these changes, on July 1:

● All 13.6 million taxpayers will receive a tax cut – and 2.9 million more taxpayers will receive a tax cut compared to Morrison’s plan.

● 11.5 million taxpayers (84 per cent of taxpayers) will now receive a bigger tax cut compared to Morrison’s plan.

● 5.8 million women (90 per cent of women taxpayers) will now receive a bigger tax cut compared to Morrison’s plan.

● A person on an average income of around $73,000 will get a tax cut of $1504 – that’s $804 more than they were going to receive under Morrison’s plan.
● A person earning $40,000 will get a tax cut of $654 – compared to nothing under Morrison’s plan.

● A person earning $100,000 will get a tax cut of $2,179 – $804 more than they would receive under Morrison’s plan.

● A person earning $200,000 will still get a tax cut, which will be $4529.