Tax Cuts for 2010 - New Tax Rates

Marginal tax rates and thresholds for the 2010 year were announced in the 2009 Budget:

2008-09                                         2009-10
Current tax thresholds from 1 July 2008 tax thresholds Income range ($)
Tax rate%
New tax thresholds from 1 July 2009 tax thresholds Income range ($)
Tax rate%
0 – 6,000
0
0 – 6,000
0
6,001 – 34,000
15
6,001 – 35,000
15
34,001 – 80,000
30
35,001 – 80,000
30
80,001 – 180,000
40
80,001 – 180,000
38
180,000 +
45
180,000 +
45

For 2009-10, the upper threshold for the Low Income Tax Ofset will increase from $60,000 to $63,750, and from 1 July 2010, to $67,500. The maximum Low Income Tax Offset is $1,350 for the 2009/10 year up from $1,200 for 2008/09.

Tax savings for various income ranges is as follows:
Gross Income
2008/09 tax
2009/10 tax
Saving
$20,000
$900
$750
$150
$40,000
$5,200
$4,900
$300
$60,000
$12,000
$11,700
$300
$80,000
418,000
$17,850
$150
$100,000
$26,000
$25,450
$550
$120,000
$34,000
$33,050
$950
$140,000
$42,000
$40,650
$1,350
$160,000
$50,000
$48,250
$1,750
$180,000
$58,000
$55,850
$2,150
$200,000
$67,000
$64,850
$2,150



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