Latest Accounting News
Hot Issues
5 strategies for successful ‘work from home’ policies
Small businesses: don’t forget your FBT concessions
ATO chases $172bn in undeclared contractor income
‘Penalties will resume’: ATO flips the switch on debt recovery
JobMaker Hiring Credit rules and reporting
ATO data-matching: JobMaker
A broad range of Calculators.
ATO Small Business Newsroom
ATO’s good-faith approach to crypto won’t last much longer
‘Much more complex’: ATO introduces new partnership profit guidelines
Cost of retirement up in December quarter
Contributing to Superannuation
ATO tipped to pounce once JobKeeper ends
What’s Happening to Small Business Loans in Australia?
ATO Revs Up As JobKeeper Set To End In March 2021
Small businesses urged to register assets before insolvency explosion.
ASIC sounds warning around high-yield bond scams
JobMaker Resources - ATO
Government mulls HECS-style business loans
Industry pressure forces ATO’s hand on STP deadline
$36bn withdrawn from super during COVID-19
ATO opens claims for first JobMaker quarter
Vaccination rates as they happen around the world
Toyota returns $18m in JobKeeper payments
Approaching the dawn
Videos and other resources for our clients
Brazen ATO scam costs Sydney woman $22k
Articles archive
Quarter 1 January - March 2021
Quarter 4 October - December 2020
Quarter 3 July - September 2020
Quarter 2 April - June 2020
Quarter 1 January - March 2020
Quarter 4 October - December 2019
Quarter 3 July - September 2019
Quarter 2 April - June 2019
Quarter 1 January - March 2019
Quarter 4 October - December 2018
Quarter 3 July - September 2018
Quarter 2 April - June 2018
Quarter 1 January - March 2018
Quarter 4 October - December 2017
Quarter 3 July - September 2017
Quarter 2 April - June 2017
Quarter 1 January - March 2017
Quarter 4 October - December 2016
Quarter 3 July - September 2016
Quarter 2 April - June 2016
Quarter 1 January - March 2016
Quarter 4 October - December 2015
Quarter 3 July - September 2015
Quarter 2 April - June 2015
Quarter 1 January - March 2015
Quarter 4 October - December 2014
Quarter 3 July - September 2014
Quarter 2 April - June 2014
Quarter 1 January - March 2014
Quarter 4 October - December 2013
Quarter 3 July - September 2013
Quarter 2 April - June 2013
Quarter 1 January - March 2013
Quarter 4 October - December 2012
Quarter 3 July - September 2012
Quarter 2 April - June 2012
Quarter 1 January - March 2012
Quarter 4 October - December 2011
Quarter 3 July - September 2011
Quarter 2 April - June 2011
Quarter 1 January - March 2011
Quarter 4 October - December 2010
Quarter 3 July - September 2010
Quarter 2 April - June 2010
Quarter 1 January - March 2010
Quarter 4 October - December 2009
Quarter 3 July - September 2009
Quarter 2 April - June 2009
Quarter 1 January - March 2009
Quarter 4 October - December 2008
Quarter 3 July - September 2008
Quarter 2 April - June 2008
Quarter 1 January - March 2008
Quarter 2 April - June 2007
Quarter 2 April - June 2006
How Australians are taking advantage of income tax cuts


New research has offered insight into how Australians intend to save the gains generated from income tax cuts rolled out in this year’s federal budget.



Colonial First State (CFS) has surveyed 2,000 Australians to determine their tax-saving intentions following changes to personal income tax announced in the budget on 6 October.

As part of the measures to personal income tax, Treasurer Josh Frydenberg declared tax cuts worth nearly $30 billion would be made available to more than 11 million individual taxpayers two years earlier than previously legislated.

Stage 2 of the Personal Income Tax Plan, legislated to apply from 1 July 2022, will now take effect on 1 July 2020. The upper threshold of the 19 per cent tax bracket will increase from $37,000 to $45,000, and the upper threshold of the 32.5 per cent tax bracket will increase from $90,000 to $120,000.

Further, low- to middle-income earners will receive additional support through an increase in the low-income tax offset (LITO) from 1 July 2020 from $445 to $700 as well as access to the low and middle-income tax offset (LMITO) for 2020–21.

According to the research by CFS, the majority of Australians intend to put the cut to personal income tax towards their savings. Sixty-six per cent of those surveyed aged between 18 and 24 said they planned to save some or all of the tax cut, versus 57 per cent of Australians overall.

Of the 22 per cent of Australians who intend to spend their tax cut, 33 per cent said they are going to put it towards essentials such as bills, groceries and insurance.

Almost one in five indicated that they plan to use their tax cut to reduce their mortgage, and 16 per cent will use it to invest in the stock market.

A further 11 per cent of Australians said they plan to use their tax saving to pay off high-interest debt such as credit card and buy now, pay later accounts. 

Meanwhile, just 6 per cent of those surveyed indicated that topping up their super or retirement savings was a priority. This is despite 16 per cent of respondents having withdrawn super as part of the government’s early release of super scheme.

“For many Australians hit hard by the coronavirus-led recession, the personal income tax cuts brought forward by the government in this year’s federal budget have been well received, alongside a range of other measures, as much-needed support,” said CFS general manager Kelly Power.

“We know that a lot of Australians have been doing it tough and the focus for many has been on navigating the current uncertainty. As we begin to emerge on the other side of the pandemic, with infection rates falling and the economy restarting, it’s important to start thinking about the future, including protecting and rebuilding wealth.

“Whether Australians decide to save or spend, it’s about being savvy about what you use the extra cash for. A little can go a long way, and if used wisely, the income tax cuts can provide an additional boost to your overall financial position.”



Emma Ryan 
01 December 2020