How to avoid a $7.8 billion tax bill for a decade

More than half of Australians could be facing a tax bill of up to $7 billion under a package of measures that will be introduced on Monday by the Coalition to help boost the economy.

Key points: Australians earning $150,000 or more will see a tax cut of $3,000 under the package, with the highest earners paying $4,000 More than a third of Australians will see an increase in income tax rates from 15 per cent to 25 per cent, with a $1,000 tax cut for the wealthiest Australians The changes will take effect from July 1 and will be rolled out over four years, with some targeted to the first two years The measures are aimed at helping the budget balance by 2019-20, but it is also designed to help the economy recover by helping people save more money.

The Government will introduce measures that are designed to lift Australia’s debt-to-GDP ratio from 160 per cent of GDP to 200 per cent.

The changes are designed not just to help stabilise the economy but also help the Government keep the budget deficit at about 4.5 per cent this financial year.

The measures include:A 1 per cent tax cut on incomes over $150k, a $2,000 reduction in tax-free income, and a $3-per-child allowance.

These changes will come into effect from June 1.

The amount of tax will be indexed to inflation.

The tax changes will be paid for by raising the threshold for the marginal tax rate from 45 per cent up to 75 per cent and a 20 per cent increase in the GST rate.

The Government says the tax cuts are aimed not just at helping stabilise Australia’s economy but to help people save money.

The Coalition has been trying to address Australia’s budget deficit, which is forecast to hit $4.5 billion in 2019-2020.

The party says the measures will help the budget keep the deficit below 4.6 per cent for the next four years.

It has also promised to reduce the rate of inflation to 1.5 percent.

The Budget is also being held up by the uncertainty over the Government’s plan to raise the GST to 25 cents from 14 cents, which will result in a tax increase of $4 billion in the next financial year, according to the Treasury.

The plan is being delayed by a legal challenge.

It is also expected to include measures to cut business rates, which could see businesses cut wages and reduce productivity.

The Treasurer’s office has not provided a budget for the coming year but it has previously said the Government would be releasing a budget before the end of the year.

Topics:budget,tax,government-and-politics,business-economics-and