Federal Budget 2016: Marginal Tax Rate Changes and other Personal Tax Matters
There are some small movements in the marginal tax rates for individual taxpayers:
The 37% tax rate, currently applicable up to $80,000 taxable income, from 1 July 2016 will apply up to $87,000 – this is a partial return of ‘bracket creep’
The 2% temporary deficit levy remains slated for removal on 30 June 2017;
The pausing of the Private Health Insurance Rebate thresholds, together with the decrements to tax offset entitlements on 1 April each year, means more people will pay more after-tax money for the private health insurance – the “30%” tax offset is long-gone (as is, for most, the net medical expenses tax offset).