Stage 3 Tax Cuts Arrive: Your July Paycheck Just Got a Secret Boost!

Yo, folks! Remember those stage 3 tax cuts we've been buzzing about for ages? Well, they're finally here, landing like a sweet surprise from Uncle Sam starting today! 🎉
But hold your horses, these ain't your regular tax refunds that land in your account like a jackpot after filing season. No, no, these cuts are more like a steady drip of joy that starts the moment you get your July paycheck. 💰
So, how's this gonna shake out? Well, let's break it down in a way that's as chill as a beach day:
Every time you cash that July pay slip and the ones after, you'll notice a little extra cushion in your wallet. It's like your boss is secretly slipping you a high-five for being awesome, tax-wise. 😉
And as for how much good vibes you'll be reaping? It all depends on your unique financial situation, but trust us, it's gonna feel like a warm hug from the taxman. 🤗
Bottom line: It's time to celebrate because your hard-earned money is working harder for you, starting NOW! 🎊 Cheers to more spending power and fewer tax worries! 🥂

There's a bit of a misconception out there that stage 3 tax cuts will give people a bigger tax return at the end of each financial year.

While that was how the recently ended low- and middle-income tax offset worked, the stage 3 cuts are entirely different.

By changing Australia's tax brackets, they reduce how much tax everyone pays on their income.

For the vast majority of taxpayers, that means instead of getting a big, juicy tax return once a year, you'll lose less of your income to the tax man and get to take home more of your pay each week, fortnight or month.
It's essentially a pay rise you didn't have to ask for.

How much of a tax cut will I get?
The government says the average tax cut will be $1888 per year – about $36 per week – but the exact amount will vary from person to person, depending on how much you earn.
Someone earning $18,000 won't get a cut, as no one pays tax on the first $18,200 they earn.
Those on the minimum wage, which for 52 weeks of work will be $47,626 as of July 1, will get an $870 cut over the course of the year, or just under $16.70 per week.

The cuts get more significant the higher someone's salary is.
Someone earning $100,000 will have an extra $42 to spend or save every week, while anyone on $190,000 will get $87 each week, or $4529 per year.
It's worth noting these are just estimates based on federal government data – your exact tax cut could be different due to tax offsets, the Medicare levy and other financial circumstances.