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How much you’ll really get from Scott Morrison’s tax cuts

Last night, the Morrison government passed the first stage of their tax-cut package. This is how much will you’ll get, and how soon.

 

 

Last night, the government’s vaunted tax cut package passed parliament. The figure of $1,080 has been publicised in the media, but how much can you really expect?

 

 

It depends on how much you earn, and the cut will only apply on the tax return you’re about to file (or have already). The actual figure oscillates between $255 and $1,080, divvied up as the below graph indicates:

 

However, there are some caveats afoot.

  1. For those who earn between $37,000 and $48,000 – you’ll get $255 back, plus 7.5% of what is over $37,000, hence between $255 and $1,080..
  2. For those who earn between $90,000 and $126,000 – you’ll get $1,080 back, but minus 3% of what is over $90,000, hence somewhere between $1,080 and $0.

However, it’s worth noting that latching to the figure of $1,080 is not entirely truthful, as a similar tax cut was already due to arrive prior to this bill passing. The original bill passed cuts to a capped measure of $530, so last night’s fumbling represents an increase of the cut, but not an invention. With that being said, if you’ve already filed your return, you will still receive the cut when the ATO cheque arrives in the mail.

 

 

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