In great news for middle-income earners the middle-income tax bracket has moved from the existing upper threshold of $80,000 to $87,000. This means up to $315 per year more will stay in your pocket than go to the tax man. It's a modest step to ease the pain of bracket creep and welcome news.
Before this change every dollar over $80,000 was taxed at the higher rate of 37% but now that higher rate won't kick in until you are earning over $87,000 and the change will be backdated and introduced for the coming tax year and so will start from 1 July 2016 onwards.
It's worth remembering that the problem of bracket creep remains. As we have said before, bracket creep is actually one of the worst forms of taxation embedded into the taxation system. You can learn more about bracket creep here.