Yahoo Finance $1,080 tax cuts set to become law
The Federal Government’s $158 billion income tax cut plan has received enough support from crossbench senators to pass the package through the Senate.
The three-phase plan passed the Lower House on Tuesday night, with the government now securing the votes of crossbencher Cory Bernardi and two votes from Centre Alliance. Tasmanian senator Jacqui Lambie has also confirmed she will vote for the package in the Senate today.
"Yes, I will be supporting the tax cuts," Senator Lambie told ABC Radio National on Thursday.
Earlier, Lambie had said her support was contingent on more support for social housing in Australia and asked the government to wipe Tasmania’s $157 million social housing debt.
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The Labor party voted the legislation through the House of Representatives on Tuesday night, with Labor leader Anthony Albanese saying the party planned to take its amendments to the Senate.
Speaking on Tuesday, Treasurer Josh Frydenberg said that should the legislation pass the Senate this week, Australians would receive their $1,080 tax cuts by the end of next week, once they filed their tax returns.
Australians earning up to $126,000 will receive the first stage of the cuts, which deliver up to $1,080 in “tax relief” to workers.
The second stage will see the 19 per cent tax rate expanded to include those earning up to $45,000, rather than $41,000.
And the third - and most contentious - stage will see the 32.5 per cent tax rate flattened to 30 per cent for all Australians earning between $45,000 and $200,000 from mid-2024.
The Labor party wanted to scrap the third stage of the income tax cuts, which it said were too costly and unfair, delivering tax relief to Australia’s wealthier citizens, and wanted to bring forward the second stage of the tax cuts which delivered more tax relief to low and middle-income earners.
Who will get what from the tax cuts?
Let’s break this down.
Australians earning up to $126,000 will get “tax relief” packages of up to $1,080. If you’re earning up to $37,000 you’ll get up to $255.
And if you’re earning between $37,001 and $47,999 you’ll receive between $255 and $1,080.
If you’re earning between $48,000 and $90,000, you’re set to get the full $1,080, and if you’re in a dual income family, you’ll get $2,160.
Once you’re earning between $90,001 and $126,000, the “tax relief” will taper off from $1,080 to $0.
More to come.
With AAP.
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