Monday, July 02, 2012

July 1: It's not just the carbon tax

Also from July 1...

PAY RISE $17.10 per week for low-paid workers

TAX FREE THRESHOLD No tax until $18,200

TAX CUTS For everyone up to $80,000

PENSION INCREASE 1.7% from May 2013


DOUBLE NSW FIRST HOME BUYERS GRANT $15,000 for purchase of new home

CREDIT CARD LENDERS Forced to clear high interest debts first


TOUGHER MEDICARE LEVY SURCHARGE 1.25% to 1.5% for high earners without private insurance

LOWER PRIVATE HEALTH INSURANCE REBATE 10% to 20% instead of 30% for high earners

INSTANT ASSET WRITE-OFF Up to $6500 per small business

MINERALS RESOURCE RENT TAX To raise to $3 billion in its first year

Swamped in the talk about the carbon tax are a raft of other changes beginning this week overwhelmingly positive for middle to low earners.

From today low paid workers will get an extra $17.10 per week as a result of the national wage decision. Around 1.4 million workers get the extra 2.9% which is likely to flow on to others through enterprise bargaining.

The tax-free threshold will jump from $6000 to $18,200 meaning Australians returning to work part-time and starting part-time work will pay no tax.

New tax scales will give every worker earning up to $80,000 a tax cut - typically worth $300 per year. No-one will face an income tax increase.

Other carbon tax compensation measures will permanently boost pensions and family tax benefits 1.7 per cent. Worth up to $338 per year for single pensioners and up to $110 per child for families that receives Family Tax Benefit A some of the increases have been paid up front. The rest will paid fortnightly on an ongoing basis from March 2013. Families receiving Tax Benefit A will also get an extra $300 per child per year as part of the Spreading the Benefits of the Boom mining tax package...

In NSW the first home buyers grant will be doubled to $15,000 but for the first time restricted to buyers of new homes. Anyone who buys a new home worth up to $650,000 will get a grant of at least $5000. Stamp duty will be cut for first home buyers spending up to $650,000.

Dealing with banks will also become easier. They will prevented from sending out unsolicited offers of higher credit card limits and required to use credit card payments to clear the highest interest rate debt first. Switching banks will be a matter of signing one form once, easier than it has ever been before.

High income earners will find the changes more costly. Taxpayers earning more than $97,000 who choose not to take out private health insurance will be hit with a Medicare levy surcharge of 1.25 to 1.5 per cent instead of the present 1 per cent. Those earning up to $83,000 will get a smaller Private Health Insurance Rebate. Those earning more than $129,000 will lose the Private Health Insurance Rebate.

In today's Age

Related Posts

. What'll change from July 1? (apart from the carbon tax)

. The carbon tax will cost how much?

. That great big new tax is HOW big?