Here are some things you should know about the reduction of tax payable over the years.
* With the passing of income tax legislation, a reduction in your tax payable will occur over the next seven years. The short term plan introduces the low and middle income tax offset. At present, the offset has already reduced tax payables under $125,333 since July 1 2018.
* The purpose of the short term plan is to slightly reduce the income tax payable for incomes above $87,000 from 1 July 2018. Income tax will then be reduced for incomes above $37,000 in the medium term (to commence on 1 July 2022).
* Majority of individuals in Australia will pay tax at the same rate because there exists a long-term plan devised to significantly increase the middle tax bracket from its current position of $87,000 to $200,000.