Financial Happenings Blog
Tuesday, October 16 2007
Yesterday saw the election campaign start with tax cut promises from the Liberal party. So what are the details?
In 2008-09
- Low Income Tax free threshold due to the Low Income Tax Offset to rise from $11,000 to $14,000.
- Start of the 30% threshold to increase from $30,001 to $34,001.
- Start of the 40% threshold to increase to $80,001.
- Start of the 45% threshold to increase to $180,001 (as promised in the budget in May).
In 2009-10
- Low Income Tax free threshold due to the Low Income Tax Offset to rise from $14,000 to $15,000.
- Start of the 30% threshold to increase from $34,001 to $35,001.
- Second top marginal rate to be cut from 40% to 38%.
- Top marginal tax rate cut from 45% to 43%.
From July 1, 2010
- Low Income Tax free threshold due to the Low Income Tax Offset to rise from $15,000 to $16,000.
- Start of the 30% threshold to increase from $35,001 to $37,001.
- Second top marginal rate to be cut from 38% to 37%.
- Top marginal tax rate cut from 43% to 42%.
To put some dollar amounts to these changes the tax payable (including medicare levy) would be:
|
Annual Income |
2007-08 |
2008-09 |
2009-10 |
2010-11 |
Reduction (pa) |
As % of 07-08 tax |
|
$25,000 |
$3,225 |
$2,025 |
$1,875 |
$1,725 |
$1,500 |
46.51% |
|
$50,000 |
$10,350 |
$8,550 |
$8,250 |
$7,800 |
$2,550 |
24.64% |
|
$75,000 |
$18,225 |
$16,425 |
$16,125 |
$15,675 |
$2,550 |
13.99% |
|
$100,000 |
$28,600 |
$26,300 |
$25,600 |
$24,950 |
$3,650 |
12.76% |
Throughout the campaign we look forward to adding further commentary on any policy proposed by the major parties that will affect financial planning and investment strategies.
Regards,
Scott Keefer
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