The Government has set a six-year tax goal for personal income tax rates. Currently, we have 4 tax rates (15%, 30%, 40% and 45%). The Government plans to reduce this to just three tax rates by eliminating the top marginal rate of 45%.
You can see the 2007-08 tax rates from our main site.
Thresholds will increase over the next few years so by 2010, a resident on $37,000 will still be in the 15% tax bracket. Upcoming changes include:
From 1 July 2008
- 15% rate applies from $6,001-$34,000
- 30% rate applies from $34,001-$80,000
- 40% rate applies from $80,001- $180,000
Article by Christie Lewis
Christie is Practice Manager at Alan Lewis Accountants . Besides accounting, her passion is for all things small business (and blogging, of course). You can contact Christie directly at christie@lewistaxation.com.au.
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