Pay rises, tax cuts from today

LOW and middle-income earners are expected to benefit most from changes to tax and welfare payments starting this week.

From today low-paid workers will get an extra $17.10 a week as a result of the national wage decision. About 1.4 million workers get the extra 2.9 per cent, likely to flow on to others.

The tax-free threshold will jump from $6000 to $18,200.

New tax scales will give every worker earning up to $80,000 a tax cut - typically worth $300 a year. No one will pay more tax.

Other carbon tax compensation measures will permanently boost pensions and family tax benefits by 1.7 per cent. Worth up to $338 a year for single pensioners and up to $110 a child for families that receive Family Tax Benefit A, some of the increases have been paid up front. The rest will be paid fortnightly from next March. Families receiving Tax Benefit A will also get an extra $300 a child a year.

Read more at Brisbanetimes.com.au


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