Australian Workers to benefit from income tax cuts

08 July 2010

Australian workers could have more money in their wallets this year, thanks to the new personal income tax rates which came into effect last week. The income tax cuts now mean that a person on a taxable income of $50,000 will save $450 every year.

The 30 per cent marginal tax rate threshold has risen from $35,001 to $37,001. The 38% tax rate has now been reduced to 37%.

These changes have come about as a result of the changes to income tax thresholds which were unveiled in the 2009 Federal Budget. An estimated 7 million Australian tax payers will benefit from the changes.

It is hoped that the income tax cuts will strengthen the economy and encourage people to return to the workforce.