Income tax system shake-up to begin on July 1

The biggest shake-up to the nation's income tax system in decades is now just months away. From the first of July, Australians earning more than $45,000 a year will receive a tax cut but there's still argument over the fairness of the plan. The last part of a massive tax reform plan was legislated by the former Morrison government and left unchanged by Labor, and aims to target ‘bracket creep’. From July 1, the 37 per cent tax bracket will be abolished and anyone earning between $45,000 and $200,000 will pay the same tax rate of 30 per cent, costing the budget $308 billion over a decade. The more you earn, the bigger the tax cut you’ll receive, with those on a $200,000 salary in line to get a $9075 tax cut, those on $120,000 earning $1875 back, however, those earning under $45,000 will not get any tax cut.