The Real Impact of Stage 3 Tax Cuts on Your Wallet

Money: Faith & Finance

Key Takeaways:

• Understanding Stage 3 Tax Cuts: Pete clarifies that on average, individuals will see an additional $20 to $70 per week, depending on their income bracket.

• Impact on Different Earners: Middle to high income earners benefit from these tax cuts, with varying degrees based on income levels.

• Historical Context: The episode revisits Stage 1 and Stage 2 tax cuts and the introduction of the Low and Medium Income Tax Offset (the Lamington).

• Economic Implications: With more disposable income in hand, these tax cuts are likely to have inflationary effects.

• Actionable Advice: Pete suggests conscious utilization of the tax savings by planning for debt reduction, investments, or smart spending.

Notable Quotes:

1. "It's much easier to talk to clients about tax if the next word out of your mouth is cuts." - Pete Burrows

2. "Know what the extra tax saving is and make them work for you." - Pete Burrows

3. "Inflation is higher than what the Reserve Bank would like, and the country would like to see it lowered a little bit." - Pete Burrows

4. "If you did have high interest rate debts, I would argue to try and pay extra off them." - Pete Burrows

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Pete Burrows is an accountant for small business and individuals with Lower Russell and Farr in Penrith, Western Sydney, Australia.
Ben McEachen hosts Hope Mornings on Hope 103.2FM in Sydney, Australia.

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