How much can you save with tax cuts in recent times in Australia? - Accounts NextGen

How much can you save with tax cuts in recent times in Australia?

How much can you save with tax cuts in recent times in Australia?

The tax saving of Australians is expected to be $1080, which is further speculated to shoot to $2565 depending on their income. With the cut down in the personal income tax as suggested by the Government, it is also anticipated that Aussies will be able to save up to $2565-a-year. Treasurer Josh Frydenberg revealed that the tax concession of 32.5 % to workers is recommended to be applied in 2022 in place of 2024.

Those having income between the slot of $50,000 and $90,000 will get to save through reduction in their annual tax by $1080, whereas those having their taxable income between $90,000 and $100,000 will be able to enjoy reduction by $1215.

On the other hand, Aussies falling in the income group of $100,000 -$120,000 will get to save $1665. Further folks with the income beyond $120,000 with a maximum ceiling of $200,000 will now cherish the news of getting to save $2565.

Mr Frydenberg said that “the Government is on the verge of formulating one massive tax bracket between $45,000 and $200,000 through which Australians would not get under the liability to pay a nominal rate beyond 30 cents in the dollar. Further, he stated that the Government is seeking for the right time to execute tax cuts as it wants to augment demand, increase consumption and thereby aid people in saving more money.

It was disclosed after levying the six weeks lockdown in Victoria due to the outspread of COVID -19, which is expected to cost over $1 billion a week to the economy of Australia.

 

Banks pulled out loan holidays.

Due to the people of Australia facing financial crunches, banks went upon to lessen the load over Australian families by reducing the degree of tremors to the economy by expanding the home loan holidays by four months. The housing prices in the real estate sector were at an all-time low in the ninth month of 2019 when rescheduling offered to the borrowers was about to expire simultaneously with the Government’s Job keeper and Jobseeker scheme.

Also,  it was found that due to the pandemic outbreak, it was observed that quite an impressive number of Australians were not in a condition to pay their rent or mortgage timely. The banking sector stated the next phase as a golden chance to those in a tough patch to repay their mortgages through restructured loans.

If borrowers are found having a hard time getting their life on track when the six months deferral expires, they will be given extra home loan holidays. Those in a good position to repay their loan will start again by paying; however, those in need will be offered continued support until they to get into a good position to repay loan and interest, said the Australian Banking Association chief executive Anna Bligh.

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