Personal-income-tax-cuts-are-law

Personal income tax cuts are law!

The government has finally legislated the tax cuts originally announced in the May 2016 Budget, so that the marginal tax rate of 37% now starts at $87,000.
The following are the rates for adult residents for the 2016/17 income year (i.e., from 1 July 2016).

Taxable income:
Tax on this income 0 – $18,200: Nil
$18,201 – $37,000: 19c for each $1 over $18,200
$37,001 – $87,000: $3,572 plus 32.5c for each $1 over $37,000 $87,001 – $180,000: $19,822 plus 37c for each $1 over $87,000 $180,001 and over: $54,232 plus 45c for each $1 over $180,000

The above rates do not include the temporary budget repair levy (due to expire on 30 June 2017), nor the Medicare levy of 2%.
The ATO has updated the tax tables and PAYG withholding tax schedules (and their online tax withheld calculator) to reflect these changes.

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