Fantastic news that all 3 stages of the Liberal Party's proposed tax cuts passed through the Senate yesterday.
The first stage is effective immediately and increases the rebate for low and middle income earners from $530 to $1,080.
The second stage applies from 1 July 2022 and increases the top threshold for the 19% tax rate to $41,000 and increases the threshold from where the 32.5% rate applies from $90,000 to $120,000.
The third stage, which applies from 1 July 2024 reduces the number of tax brackets which will be as follows (exclusive of Medicare):
$18,201 - $45,000 = 19%
$45,001 - $200,000 = 30%
$200,001 + = 45%
Hopefully lower tax rates, lower interest rates, further support for first home owners and an uptick in mining can breathe some new life into the local economy.