Personal income tax cuts to come into effect this week

 November 12, 2020

By  Chase Edwards

Tax cuts that were announced in the 2020 – 2021 financial year budget are expected to come into effect this week.

Employers are required to make changes to the amount they are withholding no later than 16 November.

This could mean up to $1,080.00 savings for workers, with the 19% threshold increasing from $37,000.00 to $45,000.00. The 32.5% tax bracket will also increase, from $90,000.00 to $120,000.00.

Low to middle income earners will also receive a one-off tax benefit of $1,080.00 for the 2021 financial year.

The tax cuts have been introduced in the hope that it will help boost the economy, and in turn help create jobs.

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