Millions of lower and middle-income workers will get immediate tax relief and some an extra $530 a year under measures announced in the Federal Budget.
But migrants will wait longer for welfare, and refugees will wait longer for job-search help, under the government plans to reduce the nation’s social services debt.
And the government will achieve one of its biggest savings measures by cutting the number of general practitioners brought to Australia on visas each year.
Tax relief for workers
Tax refunds will increase for all Australians earning up to $125,000 year but will be most lucrative for those earning between $48,000 and $90,000.
At least 4.4 million Australians will receive the maximum benefit of $530 under a new tax refund plan.
The refund will be available to those earning between $48,000 and $90,000, as a lump sum on their tax return at the end of the financial year.
In addition, Australians earning up to $90,000 will pay a reduced income tax rate of 32.5 percent, when the middle-income tax bracket cap increases from $87,000 to $90,000.
The government is also tackling “bracket creep” in future years – assuming future governments stick to the plan.
Those earning up to $41,000 will pay the lower 19 percent income tax rate by 2023, raising the bracket from $37,000.
By 2023, higher income earners will also pay less tax. Those earning up to $120,000 will pay 32.5 percent income tax.
By 2024, the 37 percent tax bracket will be abolished entirely.
Super charges
Australians with super balances under $6000 will only pay a certain amount of fees on accounts under government plans to cap charges at three percent.
In addition, those with lost super will get help from the Australian Tax Office to help source unclaimed super funds, potentially benefiting young workers, lower income earners and seasonal workers.
