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PERSONAL INCOME TAX CUTS
What are the personal income tax changes?
- From 1 July 2003, personal income tax thresholds will be
increased as follows:
the 30 per cent threshold will be increased from $20,000
the 42 per cent threshold will be increased from $50,000 to $52,000;
the 47 per cent threshold will be increased from $60,000 to $62,500.
- The Government will increase the low income tax offset to $235 per
year, an increase of $85 per year. The threshold of income
from which the low income tax offset begins to be reduced will also
be increased from $20,700 to $21,600. Some offset will be able to be
claimed by taxpayers with annual incomes up to $27,475.
How will the personal tax cuts affect taxpayers?
- These changes mean that Australian taxpayers can keep a higher proportion
of the earnings they receive after tax, providing improved incentives
to pursue work, advancement and higher skills.
What are the tax cuts worth?
- The estimated value of the tax cuts for Australian taxpayers on a
range of annual incomes is attached to this fact sheet.
How will the tax cuts be delivered to taxpayers?
- The increases in the personal income tax thresholds will be reflected
in lower amounts of tax withheld from taxpayers' income.
- The low income tax offset is claimed by taxpayers in their annual
income tax return.
- Further information about this and other Budget measures can be obtained
on the Internet at http://www.budget.gov.au.
- See also Fact Sheet: Personal Income Tax Cuts - Low Income Earners
and Fact Sheet: Personal Income Tax Cuts - Senior Australians.
- The Australian Taxation Office Personal Tax Infoline can be contacted
on 13 28 61.
Personal income tax cuts - taxpayers with annual taxable income between
$10,000 and $100,000