The income tax threshold moves to $200,304 on July 1, up from the current tax- free amount of $193,440, which means that persons earning at or below those levels on an annual basis will not pay income tax.
They are subject, however, to other statutory taxes.
The new threshold will give tax- free income of $16,692 for monthly paid workers, $7,704 fortnightly, or $3,852 weekly.
The Tax Administrative Services Department says the new threshold, which will be effective for six months only until December 31, will be pro-rated, which means that the effective threshold for the year will be $196,872.
The calculations, as laid out by the TASD, are as follows: January 1 to June 30
Threshold $193,440/12 x 6 = $96,720July 1 to December 1
Threshold $200,304/12 x 6 = $100,152 Effective threshold 2008: = $196,872
The threshold will be raised again on January 1, 2009, to $220,272.