New Tax Cuts Kick in!

New Tax Cuts Kick in!

Are you?	- An Australian taxpayer?
At a glance:	- Taxpayers are reminded that a vast array of tax cuts that were announced in the Federal Budget have now come into effect.
You should:	- Understand how the tax cuts will affect you. - Contact us if you require any clarification or advice.

1.	Taxpayers will receive tax cuts for the third year in a row with the bulk of the cuts targeted at low income households.
2.	The new tax cuts which came into effect on July 1, 2010 will mean that taxpayers on $50,000 will be $450 better off per year.
3.	Some of the tax measures that came into effect from July 1, 2010 include: - An increase of the low income tax offset to $1,500, up from $1,350 for the 2009/10 income year; - A shift in the 30% marginal tax rate bracket from $35,001 to $37,001; and - A reduction in the 38% tax rate to 37%.
4.	A range of other tax offsets, such as the Senior Australian Tax Offset, have also increased to assist low income families meet the rising cost of living.
5.	Generally, eligible senior Australians with taxable incomes of up to $30,685 for singles and $26,680 for each member of a couple for the 2010/11 income year will not incur an income tax liability. These amounts are up from $29,867 and $25,680 for the 2009/10 income year respectively.