Australian federal budget: $10 per week tax cut (sort of) for low income earners
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Low and middle-income earners will get tax cuts worth up to $10.50 a week in tomorrow's budget, which will also include a major shake-up of the aged-care sector.
The ABC understands that while the measure will start on July 1, the tax break will come in the form of a bigger end-of-year tax rebate.
The tax relief will be delivered by an increase to the Low Income Tax Offset (LITO) which doesn't show up in weekly or fortnightly pay packets.
At the moment, the LITO is worth $445 a year for people earning below $37,000 annually.
It gradually reduces and cuts out completely when people earn $66,667 a year.
Treasurer Scott Morrison is expected to announce the value of the offset will more than double to $1,000.
It will be extended to people on incomes of about $90,000 a year, the ABC understands, and would still be phased out so that the more a person earns, the lower the rebate they would receive.
That would mean an extra $10.50 a week for those who receive the maximum benefit.
Budget 2018
i put ‘sort of’ in the title, because the change would mean a larger tax return refund equivalent to an extra $10 per week, as opposed to receiving an extra $10 per week in your payslips.
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