Under $50,000 and maximum 18% tax

If you earn up to $50,000, then under National your effective tax rate will be between 15% and a maximum of 18%. That’s great for letting low to middle income workers keep more of their money – rather than forcing them to pay more tax so benefits can be paid to families with children earning over $100,000

And for those who claim the ‘rich’ will get the most benefit from the tax cuts. Well for those who earn over $100,000 they will go from paying 25.1% of all personal tax to 26.3%. Yes as the biggest taxpayers they get the biggest nominal amount back, but they do not get the biggest percentage – in fact they end up paying a greater share of the tax take.

The income which gets the largest percentage decrease is $50,000 – those on $50,000 will have their tax will reduce by a whopping 20.7%.

Also those on national super will benefit by $560 for a married couple, as the pension is calculated as a percentage of the average after tax wage.