A majority of truckies Spy has spoken to welcome the federal government tax cuts from the start of the new financial year on July 1.
But they have reservations about how they will improve personal weekly finances.
They also think they won’t really have an impact on the weekly budget due to cost-of-living increases.
“The rising cost of fuel will add the most expense for us owner-operators, more than what we will benefit by from the tax cuts,” was a common response.
These tax cuts are: Earn up to $18,200 – pay no tax; pay a 16 per cent tax rate on each dollar earned between $18,201-$45,000 (now 19 cents); pay a 30 per cent tax rate on each dollar earned between $45,001-$135,000 (now 32.5 cents); pay a 37 per cent tax rate on each dollar earned between $135,001-$190,000; and pay a 45 per cent tax rate on each dollar earned above $190,000.
A lot of truck drivers who are employed by companies often tell me they earn around $100,000 a year.
These will save $2179 a year, which after all the extra costs, won’t leave much for other things.
There are also expected to be three interest rate rises according to financial experts, which could start before the end of the year.
Not good news for those with a mortgage.