AN independent analysis of the government’s tax cuts has found people in the Tamworth region will save an average of $136 next financial year, and by 2024-25, the accumulative figure will balloon to just over $3700.
Research by the National Centre for Social and Economic Modelling breaks down the impact of the cuts across the whole nation.
The government hopes to roll out its income tax package in three stages between now and 2024-25, with first tax cut kicking in for the 2018-19 financial year – taxpayers will have to wait until 2022-23 to get the next cut.
The accumulative effects and two subsequent tax cuts will impact each community differently, based on the spread of their tax brackets.
For example, next financial year Armidale and Walcha both save an average of $137 – but by 2024-25, Walcha residents will save $4172 compared to Armidale’s $3857.
Across the region, Gunnedah residents will save $139 come July 1 and in seven years time are looking at savings of $3781.
Inverell locals are looking at a $123 tax relief, followed by savings of $3287.
It’s not a huge amount in the grand scheme of things.Tamworth accountant Mathew Old
Glen Innes savings will go from $115 to $3085, Narrabri from $142 to $3790, while the Liverpool Plains will go from $125 to $3449.
Tenterfield residents will save $103, followed by a total of $3069, while Moree is looking at savings of $141 and $3876.
The city of Tamworth was broken down in to three areas – east ($144 to $3622), north ($149 to $4029) and west ($116 to $2693).
Tamworth account Mathew Old said the tax cuts were in line with what the country could afford at the moment.
“It will make a real difference, it's extra money in peoples’ pockets,” Mr Old said.
“But it’s not a huge amount in the grand scheme of things.”
As a region, the New England and North West had fewer gains compared to the states other regional destinations such as Bathurst ($141 to $4136), Orange ($143 to $4256) and Dubbo ($150 to $4092).
The savings pale further in comparison to inner-metropolitan suburbs.
The blue-chip eastern Sydney suburbs of Paddington ($201 to $9459) and Double Bay ($174 to $9356) – both of which are in the electorate of Prime Minister Malcolm Turnbull – were among the biggest savers in the country.
Mr Old reminded people not to count their eggs for they’ve hatched.
“Remember, we’ve got two elections to go before the last two cuts,” he said.
The government’s tax plan must also pass through the senate before it is approved.
FAST TAX FACTS
- In the New England electorate, 86 per cent of people have a taxable income of $80,000.
- Just under half of the electorate, 48 per cent, have a taxable income of under $37,000.
- The seat has the equal fifth highest percentage of people in the country with a taxable income of $37,000.
- Comparative, in the neighbouring electorate of Parkes, 82 per cent of people have a taxable income of under $80,000, while 44 per cent sit under $37,000.
- All of the 10 top electorates with the highest proportion of people in the lowest tax bracket are in regional areas – with the exception of Blaxland in western Sydney.
- People with a taxable income of less than $37,000 will receive a tax cut of up to $200 from July 1.
- Those on taxable incomes between $37,000 and $48,000 will get a cut of up to $530.
- All taxpayers between $48,000 and $90,000 will get a $530 tax cut.
- If approved, the first tax cut will kick in for the 2018-19 financial year. Subsequent tax cuts will come in to effect in 2022-23 and 2024-25.