Use tax cut calculator to know how much benefit you getting

Graphic- @JEChalmers

People living and working in Australia are experiencing cost-of-living pressures. In response, the Australian Government has made changes to the individual income tax rates and thresholds. Starting from 1 July 2024, every Australian taxpayer will receive a tax cut. Tax cuts reduce the amount of tax you pay. For many taxpayers, this means you will pay less tax each pay day and keep more of what you earn.

Here is an example of how these tax cuts work. Priya is a registered nurse who lives in regional Australia. In the 2023–24 financial year, she earned $90,000 and paid $21,517 in income tax, including the 2 per cent Medicare levy. On the same salary, Priya will get an annual tax cut of $1,929 in 2024-25. This means she would pay $19,588 in income tax in the 2024–25 financial year.

In Australia, the amount of income tax you pay depends on your annual taxable income. The higher your annual taxable income, the higher your tax liability is.

For many taxpayers, your tax cut will be reflected in your take-home pay each pay day. For others, you will receive it when your tax return is lodged and processed after the end of the 2024-25 financial year. However, tax cuts are not the same as a tax refund. A tax refund is what you receive back from the ATO if you pay more tax than you need to when you submit your tax return.

You can find out how much your annual tax cut will be by using the tax cut calculator.

The tax cut calculator is available in 14 languages.

All you need to do is visit the webpage and enter your annual taxable income to estimate your annual tax cut. The calculator only provides an estimated figure, and your actual tax outcome may be different from the calculated figure.

Visit https://taxcuts.gov.au/ to use the tax cut calculator, or to find more information about the tax cuts.

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By SAT News Desk

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