Most households will receive a tax cut in the next 12 months, in a bid to encourage more spending to boost economic activity. How much will you get?
If your annual income is $100,000, you'll receive an extra $1,530 for this financial year, another $750 from 2021-22, and $2,125 from 2024-25.
The tax changes will be backdated to July 1, so the Australia Tax Office will start taking less tax from workers' pay packets between now and next financial year to ensure households start receiving an immediate boost in their weekly income. It wants the extra disposable income to encourage households to spend more in coming years so they can help to pull the economy out of the worst recession in 90 years.
Treasury estimates these tax cut changes will increase gross domestic product by $3.5 billion in 2020-21 and $9 billion in 2021-22 while creating an additional 50,000 jobs by the end of 2021-22 — compared to what would have occurred if the tax cut plan wasn't changed.
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