We have heard the term lolly scramble thrown around when the 2017 budget has been mentioned. The key tax announcement is a change to the tax thresholds. So what does that mean for you?
Previously the tax thresholds looked like this:
| Income tax bracket | Tax rate |
| $0 – $14,000 | 10.5% |
| $14,001 – $48,000 | 17.5% |
| $48,001 – $70,000 | 30% |
| $70,000 and higher | 33% |
From 1 April 2018, they will look like this:
| Income tax bracket | Tax rate |
| $0 – $22,000 | 10.5% |
| $22,001 – $52,000 | 17.5% |
| $52,001 – $70,000 | 30% |
| $70,000 and higher | 33% |
Working for Families and the Accommodation Supplement
The family tax credit rates will increase from 1 April 2018. The rate for the first child aged under 16 will increase by $9 a week; the rate for each subsequent child will increase by either $18 or $27 per week, depending on the age of the child. However, the family tax credit will abate at 25c in the dollar above an income of $35,000.
The Independent Earner Tax Credit (which was up to $10 per week) has been removed.
The accommodation supplement rates (which had been unchanged since 2005) are to increase from 1 April 2018. For a two-person household this represents an increase of between $25 and $75 a week, while larger households will receive an increase of between $40 and $80 a week.
The accommodation benefit for eligible students will also increase by up to $20 a week.
Have questions on how this effects you?
Get in touch today.