Tax cuts for students, apprentices
MOST university students, TAFE students and apprentices will now pay no tax or less tax as part of the Australian Government’s $8 billion reform package for low and middle-income earners, says New South Wales Senator Ursula Stephens.
The federal Government had lifted the tax-free threshold from $6000 to $18,200 as part of the Clean Energy Future household assistance package.
“This is the largest increase in the threshold in the history of Australia and the first increase in more than a decade – and students stand to be some of the biggest beneficiaries,” says Senator Stephens.
“A student who earns less than $18,000 will no longer pay any tax.
“This is a great benefit for students who take on part-time and casual work to support themselves while they study.
“Our reforms mean students will take home more in their fortnightly pay packets, rather than having to wait until tax time for a refund.
“Students earning less than the new tax-free threshold may not even have to lodge a tax return.
“The tax cuts won’t just help students, it will also help other low-income earners such as apprentices training to become tomorrow’s tradesmen and women.
“When combined with the low-income tax offset, workers and students will be able to earn up to $20,542 without paying a cent to the tax man,” says Senator Stephens.
“And many of those that will have to pay tax will see increases in their take home pay.
“That means a typical electrical apprentice with a taxable income of $25,000 will keep an extra $503 per year.”
Senator Stephens says an electrical apprentice earning $25,000 a year before the July 1, 2012, tax cuts would have paid $1350 tax for the year.
Since July 1 they will only pay $847 in tax, saving them $503.
Similarly, a student studying catering fulltime at TAFE who earns $20,000 a year working part-time won’t pay any income tax since July 1, 2012, putting an extra $600 in their pockets.
A student studying economics at university who earned $18,000 a year in a part-time job but doesn’t receive Youth Allowance will have paid $300 in the 2011-12 tax year.
Since July 1 they will have no income tax to pay and being under the tax-free threshold means that they may not have to lodge a tax return.
Further information at cleanenergyfuture.gov.au or call 1800 057 590.