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Every taxpayer will receive a tax cut from 1 July 2000. Personal income tax cuts are part of The New Tax System.

Fairer and lower income tax

Under The New Tax System, the tax burden will be reduced for all taxpayers and spread more fairly so everyone pays their fair share of tax. This means that around 80 per cent of taxpayers will pay a top marginal tax rate of 30 per cent or less.

*In addition, a low income rebate of up to $150 continues to apply.

Key features of the new scale

• An increase in the tax-free threshold from $5400 to $6000. This is worth $120 a year to taxpayers with taxable incomes over $6000, and up to $120 a year for those with taxable incomes lower than $6000.
• A reduction in the lowest marginal tax rate from 20 per cent to 17 per cent. This will benefit all income taxpayers but especially those taxpayers on low incomes.
• A lower tax rate of 30 per cent for people in the $20 701-$50 000 taxable income bracket.
• A $10 000 increase in the level of taxable income at which the top marginal rate takes effect.
• How much is your tax cut?*