The Australian government says taxpayers will benefit from AUD7,000 (USD5,303), increase the “middle income” tax category for several weeks.
The government introduced the first of September to income tax benefit in 2016. It provides for the implementation of the budget 2016 proposal to increase the threshold for the tax rate to 37 percent compared to AUD80,000 to AUD87,000.
According to Treasurer Scott Morrison, “This will prevent about 500,000 taxpayers who are at a high 37 percent marginal tax rate.
The reform will apply retroactively from 1 July 2016 “As soon as the law will change, people will get every dollar of their personal income tax benefits retroactively from July 1, 2016.” This could mean more return for some.
Earlier, the Australian Tax Office (ATO) has confirmed that the government will release a new Pay As You Go (SPOD) tax at the source of payment to reflect changes made to the tax benefits of the law on the income statement. As a result, on October 1, employers will be required to reduce the amount of tax on hold for affected taxpayers. If the tax overpaid by that date will be returned to the ATO in the assessment after the 2016-17 financial year.