Announced tax cuts from 1 July 2009
In accordance with the tax cuts announced in last year’s budget, the new personal income tax thresholds for the 2009- 2010 year will be as follows:
|
Income threshold
|
Tax rate
|
|
$0 – $6,000
|
0%
|
|
$6,001 – $35,000
|
15%
|
|
$35,001 – $80,000
|
30%
|
|
$80,001 – $180,000
|
38%
|
|
$180,000+
|
45%
|
The new personal tax rates differ from the tax rates for 2008-2009 in that the income threshold for the 30% tax rate has been increased from $34,000 to $35,000 and the 40% tax rate has been reduced to 38%.
Oculus comment
Clients who have implemented a transition to retirement strategy may wish to amend the amount they are salary sacrificing to take into account the new $35,000 threshold and the 38% tax rate. Clients may need to take into account the proposed changes to the concessional contribution caps.
