If you are earning less than $126,000 a year, this article may be worth taking a look at.
With the extended $1080 coming to an end within the next few months, many of us earning less than $126,000 per year will notice that our wallets will be a little bit lighter.
To provide support to the thousands of workers struggling due to the COVID-19 pandemic last year, Treasurer Josh Frydenberg, announced the $1080 tax offset for low and middle-income earners who earn between $48,000 and $90,000 would be extended into the 2020-21 budget.
However, even after the promised tax cuts in the 2024-25 Financial Year, we will soon be seeing an increase in our overall tax with 3.4 million being $1080 worse off and 7 million taking home less pay.
As an example, you may be earning $80,000 and take home $63,013 (after tax) this financial year, however next financial year, this is going to fall to $61,933, with it increasing to $62,808 within the 2024-25 financial year when the new tax cuts begin. And a person on $250,000 will pay more than $9,000 less in tax in the 2024-25 financial year, compared to what they paid in the 2020-21 financial year. |
So, what does this mean for you?
If you are earning less than $126,000 a year you will find that your take-home pay will be less than usual, and if you are earning $250,000 or more, you will find that you will have a bit extra in your pocket on payday.