Posted: 12 October, 2016
You Could Be One Of The Three Million Aussies Set For A Tax Cut
3.1 million Australians are set to get a tax cut after changes were passed in the Senate on Wednesday.
The second highest income tax rate of 37 per cent will now kick in at $87,000 instead of $80,000. The tax rate payable from $80,001 to $87,000 will now be 32.5 per cent.
The changes will give taxpayers a maximum tax cut of $315 a year.
"Our outdated tax system is punishing hard work, hindering growth, limiting opportunity and hampering innovation," Treasurer Scott Morrison said.
"This will reward and encourage hard working Australians for doing overtime, picking up extra shifts, earning a promotion or getting a higher paying job, instead of penalising them with a higher tax rate."
The changes passed with the support of Labor. The Greens however opposed the cuts, with Senator Peter Whish-Wilson calling them “shameful” and saying that the wealthiest Australians did not need an extra $6 a week for a coffee and a bite of a muffin.