2009 Budget – Tax Cuts in 2009

Written on 18th May, 2009

Announced tax cuts from 1 July 2009

In accordance with the tax cuts announced in last year’s budget, the new personal income tax thresholds for the 2009- 2010 year will be as follows:

Income threshold	Tax rate
$0 – $6,000	0%
$6,001 – $35,000	15%
$35,001 – $80,000	30%
$80,001 – $180,000	38%
$180,000+	45%

The new personal tax rates differ from the tax rates for 2008-2009 in that the income threshold for the 30% tax rate has been increased from $34,000 to $35,000 and the 40% tax rate has been reduced to 38%.

Oculus comment

Clients who have implemented a transition to retirement strategy may wish to amend the amount they are salary sacrificing to take into account the new $35,000 threshold and the 38% tax rate. Clients may need to take into account the proposed changes to the concessional contribution caps.