| 1st July 2010 starts a new financial year in | | | | $37,001 - $80,000 $4,650 plus 30c for each $1 |
| Australia. With the new year, a new reduced | | | | over $37,000 |
| rates of income tax is has been implemented by | | | | $80,001 - $180,000 $17,550 plus 37c for each $1 |
| the Government. The following savings are a | | | | over $80,000 |
| sample of what can be expected, the major | | | | $180,001 and over $54,550 plus 45c for each $1 |
| beneficiaries are the middle income earners as | | | | over $180,000 |
| you can see from the amounts below. | | | | The above rates do not include the Medicare levy |
| $600 per week the savings are $2.00 | | | | of 1.5%, which is subject to income thresholds. |
| $900 per week the savings are $8.00 | | | | Nor does it include any income tax offsets, these |
| $1,200 per week the savings are $7.00 | | | | apply to the taxpayers individual circumstances. |
| For the low income earners the low income tax | | | | There is a common misconception that as you |
| offset has increase to $1,350 from $1,200, this | | | | move into a higher tax bracket, all of your |
| means that the taxpayer can have extra earnings | | | | earnings are taxed at the higher tax rate, |
| of $1,000 with out effecting their tax payable. | | | | thankfully this is not the case, only the income |
| The new tax brackets are set out below for the | | | | above the tax bracket is taxed at that rate. |
| 2011 financial year. | | | | Using the chart above if your income was |
| Taxable income Tax on this income | | | | $85,000, only $5k would be taxed at 37% not |
| $1 - $6,000 Nil | | | | the full $85k. |
| $6,001 - $37,000 15c for each $1 over $6,000 | | | | |