BREAKING
NEWS
More income? Yes please.
July 2006
In the May Budget this year, the Federal Government proposed more generous income tax rates for the
Australian workforce. The good news is that these enhanced rates took effect on 1 July 2006, so most
people can look forward to more disposable income in their future pay-packets. Not only are the income
thresholds more advantageous, the 47% and 42% tax rates have decreased to 45% and 40% respectively.
This means that over 80% of tax payers will have a tax rate of 30% or less! In addition, only 2% of
taxpayers will be subject to the top tax rate.
How much income tax did you pay before?
If your taxable income was: The income tax you were paying
previously was:*
$0 - $6000 0%
$6,001 - $21,600 $0 + 15% over $6,000
$21,601 - $63,000 $2,340 + 30% over $21,600
$63,001 - $95,000 $14,760 + 42% over $63,000
$95,001+ $28,200 + 47% over $95,000
How much income tax will you pay from 1 July 2006?
If your taxable income is: The income tax payable is:*
$0 - $6,000 0%
$6,001 - $25,000 $0 + 15% over $6,000
$25,001 - $75,000 $2,850 + 30% over $25,000
$75,001 - $150,000 $17,850 + 40% over $75,000
$150,000+ $47,850 + 45% over $150,000
* Medicare levy may also be payable.
What does this mean for your hip pocket?
More disposable income! For example,
If your taxable income per year is: You will be better off by
$50,000 $510 per year
$100,000 $2,700 per year
$150,000 $6,200 per year
Now is a good time to think about your future.
Have you decided how you are going to spend the extra money? Australians now have even more reason to
put the right plan and investments in place to secure their future. Consider seeking personal financial advice
from someone who is qualified to guide you on maximising your income tax cut windfall.
For those of you whose future income depends on hitting the jackpot….
If you are relying on striking it rich to fund your retirement, we’ve got some sobering statistics! Here are your
chances of winning the top prize in each of the following games.
$2 Instant Scratchie 1 in 960,000
$5 Jackpot lottery 1 in 5,900,000
Lotto 1 in 8,145,060
Oz lotto 1 in 45,379,620
Powerball 1 in 54,979,155
Source: NSW Office of Liquor, Gaming and Racing, “Playsmart” brochure, April 2006
ING Custodians Pty Limited
ABN 12 008 508 496 This document has been prepared for general information only and is based on information current as at 5 July 2006
AFSL 238346 which may be subject to change. You should seek the advice of a financial adviser and read the relevant Product
RSE L0000673 Disclosure Statement for the relevant financial product before making any investment decision.
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