New tax rates from July 2007
Sunday, June 17th, 2007Great news for residents on low incomes. From July 1 2007, the 30% threshold will again increase. What does this mean?
For the tax year July 1 2006 to June 30 2007, the rates were as follows.
$0 to $6000 tax rate = nil
$6001 to $25,000 tax rate = .15c (15%)
$25,001 to $75,000 tax rate = .30 (30%)
$75,000 to $150,000 tax rate = .40 (40%)
Over $150,000 tax rate = .45 (45%)
For non-residents, the tax rate for $0 to $25,000 = .29 (29%), then follows as for residents.
From July 1 2007, the 30% threshold changes yet again. All others remain the same until 2008.
The new threshold from $6001 to $30,000 will be .15 (15%)
The 30% threshold begins at $30,001 instead of $25,001. An additional 15% on $5,000 is $750. Not counting medicare, HELP and other schooling debts, you should be getting an additional $14 approximately in your pay each week.
There will be further changes the following year—that is the 2007-2008 tax year.
Thresholds from July 1 2008 will be:
$0 to $6000 tax rate = nil
$6001 to $30,000 tax rate = .15c (15%)
$30,001 to $80,000 tax rate = .30 (30%)
$80,000 to $180,000 tax rate = .40 (40%)
Over $180,000 tax rate = .45 (45%)
For non-residents, the tax rate for $0 to $30,000 will be .29 (29%), and then follows as for residents.
I will let you do the sums yourself.