Budget 2016 – Tax Cut for Individual Tax Payers

Win for individuals earning more than $80,000 pa

Half a million workers earning over $80,000 a year have been given a tax cut. The Government is increasing the upper limit for the second highest tax bracket of 37 cents in the dollar from $80,000 to $87,000.

This means that individuals earning over $87,000 will now be $315 better off every year. Previously they would have been taxed at 37 per cent on every dollar over $80,000, whereas now the lower tax rate of 32.5 per cent will apply.

For those earning more than $250,000…

From 1 July 2017, those earning $250,000 or more will pay an additional 15% tax on superannuation contributions made to a fund, meaning a total of 30% tax on super contributions.