New Tax Changes Explained

TL;DR

New tax laws include a tax relief of $1080 per person for those earning up to $126,000, followed by changes in tax brackets starting from July 2022.

Transcript

g'day and welcome to this week's video my name's robert goudie and this week we and have a look at the text the new tax laws that were passed through the senate and will take effect from the financial year 2019 just behind us there's three parts to the changes so I thought we were worth while going through some of these to you a bit of an look at t... Read More

Key Insights

• 🚕 The new tax laws provide a tax relief of $1080 per person for individuals earning up to $126,000.
• 🚕 The tax relief will benefit around 10,000 Australians.
• 🚕 Changes in tax brackets will simplify the tax system and reduce tax rates.
• 🚕 The tax relief will be in effect until the 2022 financial year.
• 🚕 Changes in tax brackets will start from July 2022, with further adjustments in subsequent years.
• ☠️ The new tax rates will result in a reduction in tax rates for incomes between $45,000 and $200,000.
• ✋ Higher-income earners, with incomes over $200,000, will save approximately $11,000.

Questions & Answers

Q: What is the tax relief offered by the new tax laws?

The new tax laws provide a tax relief of $1080 per person for individuals earning up to $126,000. This relief can potentially reach $2160 for a household.

Q: When will the changes in tax brackets start?

The changes in tax brackets will start from July 2022, marking the beginning of the second phase of the tax reforms.

Q: How will the changes in tax brackets affect tax rates for different income levels?

The tax brackets will change, starting at $45,000 and going up to $120,000 for the financial years 2022-2024. From July 2024, the tax rate for income between $45,000 and $200,000 will be 30%, and the top tax bracket will be applicable for income over $200,000.

Q: How will higher-income earners be affected by the changes?

Higher-income earners, particularly those earning over $200,000, will save around $11,000 under the new tax rates. However, it is important to note that these changes may not be finalized before the 2024-2025 financial year.

Summary & Key Takeaways

• The new tax laws provide a tax relief of $1080 per person for individuals earning up to $126,000, benefiting around 10,000 Australians.

• The tax relief will be in effect until the 2022 financial year and can potentially reach $2160 for a household.

• Changes in tax brackets will occur in three phases, starting from July 2022, simplifying the tax system and reducing the tax rates.