Aussie pay packets to grow from tomorrow

Wednesday 30 June 2010

Article by Mozo

Australians will have a bit more money in their pay packets from tomorrow (July 1st) as a number of tax changes kick in to herald the start of a new financial year.

Tim Blue of the Australian noted that from tomorrow, Aussie workers can earn more before moving into the 30 per cent tax bracket while the 38 per cent tax rate is decreasing to 37 per cent.

The changes mean someone on an income of $40,000 to $60,000 will gain $450 extra a year, he observed, while someone on $150,000 will get another $1,000 a year, though such adjustments do not include the Medicare levy of 1.5 per cent.

Meanwhile, lower earning employees will also reap certain tax benefits during the new financial year, Mr Blue confirmed.

"You will still pick up the low income tax offset, which increases from $1,350 to $1,500 for 2010-11, phasing out after $30,000 by 4c in the dollar until taxable income reaches $67,500," he said.

Such changes may encourage more Aussies to compare savings accounts in search of the best returns. Earlier this week, the Herald Sun reported that the Gillard government will back plans for a no-frills superannuation scheme named MySuper as a means of boosting retirement savings.

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