Federal Budget 2018: How much money you’ll get back
More than ten million Australians received some pleasing news as the Federal Budget was announced: they will be receiving a lump sum payment as part of the new tax offsets, set to go into play from July.
Here’s the basic breakdown of how it will affect you:
If you earn up to $37,000, your tax will be reduced by $200 – paid in a lump sum after filing your return. The average tax paid in this bracket is $1,900 a year, so it’s a decent cut.
Those between $37K – $90K will receive a $530 reduction, paying an average of $10,400 a year (keep in mind, this is a bracket that houses 4.4 million people, so if you are in the lower end of this earnings bracket, you will pay a loss less than the average).
For those earning over $90,000, the tax relief reduces to zero above $125,000.
The budget has also banned ‘exit fees’ when switching super accounts, a predatory practice that costs Australians over $37 million each year. Funds will also be banned from charging those under 25 for life insurance policies that are tied into their super.
The article was originally published on Brag Magazine