A new Government tax plan will mean more money for families, but will hit people in lower income groups harder.
Key points:The new tax regime will be unveiled on Thursday at 10amLocal businesses will be given extra time to make their tax returnThe Government is also cutting the threshold for tax, which is currently $42,000, to $38,000Local businesses and organisations that employ a total of 30 people or more will be able to apply to have their tax returns lodged online.
These companies will be expected to provide details of their business, and will be allowed to charge higher rates than they do currently.
They will also be required to file their tax statement online.
“The Government’s taxation reform plan will see an increase in revenue and reduce costs for taxpayers,” the Department of Finance said in a statement.
“For example, small businesses that employ fewer than 30 people will see a reduction in their income tax bill of up to 50 per cent, while larger businesses will see increases of up, up to 70 per cent.”
This is an extract from a new paper from the Treasury Department that details changes to the way tax is paid and paid on.
The Government says the new tax framework will mean families and small businesses will have more money to spend.
“Small businesses will benefit from a tax cut that will allow them to pay more tax on their wages and for the cost of their goods and services,” it said.
“More importantly, families and low-income households will be better able to keep more of the money they earn.”
But there are a number of concerns with the proposal.
A major one is that the Government is cutting the tax threshold for filing a tax return.
Under the current system, those who are in a higher tax bracket would be required by law to pay a higher rate of tax.
This was done because of changes made to the GST system, which brought down the tax rates paid by those earning between $42 and $38 million per year.
This has led to many businesses that have a high turnover, such as large retailers, being able to pay less tax.
The new proposal will change that.
Under its proposed new tax scheme, those earning less than $42 million will no longer have to pay any income tax at all.
In fact, they will pay an income tax rate of 0.8 per cent.
Under this scheme, they are expected to save $3,400 per year on their tax bill.
But that is less than what they would have had under the previous system.
Instead, they would receive a rebate equal to half of the amount they would pay in taxes, with the remainder going to their employer.
This means they would end up with a refund of $1,200, rather than $3.4 million.
This is in stark contrast to the current GST system.
Under current GST, businesses pay an additional 3.5 per cent tax rate.
This rebate is calculated by subtracting the income tax from the GST paid by employees.
Under a new proposal, this is reduced to 1.4 per cent under the new scheme.
But this will mean many businesses will not receive the rebate they would otherwise have been entitled to.
And the Government will also cut the amount of money businesses and companies can deduct from their taxable income.
Businesses and individuals will also have the option of filing a joint return, meaning that a single person will be entitled to only half of what they paid in tax.
Business owners will also see a change in their tax rates.
Under their current system the business tax rate is now 1.5, which means an individual will pay 5 per cent of their income in tax and will receive a marginal tax rate rate of 20 per cent – the same as that paid by a married couple.
But under the proposed changes, that will drop to 1 per cent and businesses will pay 2.25 per cent income tax.
As well as cutting the income taxes, this will also reduce the threshold at which an individual can claim a child tax credit.
This will mean a single parent with two children who earns $50,000 or less will only be able have their children claim the tax credit if they earn $36,000.
But they will be eligible for the full $30,000 child tax benefit if they make $80,000 in income.
The changes will affect people who earn less than the threshold, but are earning more than it.
For example a person earning $50k in income and earning $100,000 would be eligible to claim the child tax Credit.
But those earning more will still be eligible.
Business and individual income tax is a key revenue stream for the Government, but there is an issue with the existing tax regime.
In 2015, the Government raised the threshold of income tax to $42.5 million.
Under Labor, it was only $39.5m, and the Government has not updated the threshold since then.
This is partly due to the changes made in the GST