Posted on 8 May '12 by , under General News.
Changes to the personal income tax system will make it more simple and transparent to use.
From July 1, the Government will serve tax cuts to low and middle-income individuals by increasing the tax-free threshold and modifying the initial two marginal tax rates over two phases.
The tax-free threshold will increase from $6000 to $18,200, with the maximum value of the low-income tax offset reduced from $1500 to $445.
The first marginal tax rate will be increased from 15 to 19 per cent and apply only to that part of taxable income which exceeds $18,200, but does not exceed $37,000.
The second marginal tax rate will increase from 30 to 32.5 per cent and apply to that part of taxable income which exceeds $37,000, but does not exceed $80,000.
Phase two of tax cuts will come into effect July 1, 2015.