With Scott Morrison and the Liberal Party maintaining office for the next term, the tax scales have been shifted as a new bill was passed in the Senate.
Now, if you are unaware, this means that low to middle income earners who earn under $126,000 per annum will get more cash back come tax time.
Let’s clarify exactly how much you get back from the tax cuts
- Under $37,000 – you will get $255 back.
- Between $37,000 and $48,000 – $255 back plus 7.5% of what is over $37,000 (so that’s between $255 and $1,080).
- Between $48,000 and $90,000 – $1,080 back, flat. No calculations needed.
- Between $90,000 and $126,000 – $1,080 back but minus 3% of what is over $90,000 (so between $1,080 and $0).
- Over $126,000 – zero.
How You Should Manage the Extra Cash
Most people whom earn a little extra, spend a little extra. Normally “spending a little extra” includes unnecessary ‘luxury goods.’ We are all for enjoying your hard earned dollars, but we also, (and more importantly), want to ensure financial prosperity far beyond “just getting by.”
If you are earning $37,000 and receive and extra $255 per year, this may not seem like a lot. However, it’s more than you previously had. Our encouragement is to put that money away into a separate account. Adding it to savings, can and will add up IF you leave it alone.
Building wealth is not a fast game. It takes time, effort and most importantly, discipline. You will eventually get ahead when you learn the discipline of saving. Get your money to work for you, rather than working for it. Unfortunately, when you are working for money, you are its slave. Be the master of your money by making it work for you.
Let us show you how to build wealth that secures the future for you and your family. The greatest stress in Australia right now is financial. We have the experience, expertise and research to help you ensure your security. Start enjoying a life with less financial stress – contact us today.