Vince Scully

So that's Working Australian Tax Offset, and that's a $250 reduction to your tax bill.

So you work out your tax and then deduct $250 if you have income from employment.

and that's worth $250 regardless of how much you were in, or as long as you were in over the tax-free threshold.

And the other big change is the introduction of a fixed $1,000 deduction against employment income, which is designed to cover all your normal working deductions.

It's not a replacement, so if you,

make charitable contributions, you can still claim those.

This is effectively a freebie and that reduces your taxable income by $1,000.

So if you're earning under $135,000, that's worth $320, being 30% tax plus 2% Medicare levy.

And so you

Add to that the fact that the lowest marginal rate drops from 16% to 15%.

So income between 18,200 and 45,000 drops from 16% to 15% from 1 July and to 14% from 1 July, 2027.

So you add all those together for someone earning between 45,000 and 135,000, which covers the bulk of the population, that's worth a combined $838 a year.

So what's that, $160 a week?

$838.

Yeah, $16 a week.

Sorry, $16 a week.

And the advantage of an offset is that it's the same for everyone regardless of their tax rate.

So whether you earn 25,000 or you earn 125 or 225,000, it's still worth $250.

Whereas if you lift the threshold, everyone gets the benefit at their highest marginal rate.

So the more tax you pay, the more benefit you get.