The new 2018 Budget revealed its plans to cut tax for working Australians. 

Through this new initiative, low and middle income earners will be able to receive tax relief worth up to $530, to take pressure off the rising costs of living. 

From the next financial year in July 2018, Australian workers who earn up to $37,000 will receive a 1.9 per cent tax cut, equaling an estimated amount of $200 annually. 

The offset increases for those who earn between $37,000 and $48,000, with an average savings of $290 annually.

Those who earn between $48,000 and $90,000 will receive the maximum offset of $530. This will be an average of $10 of savings per week. 

Moreover, the tax bracket for those earning between $87,000 and $90,000 has also decreased as they have moved back to the lower tax bracket of 32.5 per cent from 37 per cent. 

“The economy is improving and all Australians should share in that,” Treasurer Scott Morrison said. 
As this initiative continues, around 94 per cent of Australian taxpayers will face a maximum marginal tax rate of 32.5 per cent by 2024-25. 

This is the start of the seven-year personal income tax plan to make personal income tax lower and fairer. 

The plan will be under one piece of legislation, and is waiting to be passed in the Senate. 
“The plan will go into the Parliament and we will seek to have it legislated as soon as possible,” Mr Morrison said.