On face value, this sounds really good, BUT, how good is it really ?
If your gross income during this last year was $16,000 you paid ZERO tax.
If you earned $16,500 you paid $75.00 in tax.
Due to the current Low Income Tax Offset, the threshold for many is actually $16,000 not $6,000.
A quote on this result in the Australian was:
Every taxpayer with income below $80,000 will receive a tax cut, with most getting at least $300 a year.
Reading about raising the threshold by $12,000 gave me an impression of much greater savings, until I worked it out, and read a bit more than just the headlines.
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Umm, hate to tell you this but you are a little bit out. Your tax on gross earnings of $16500 is approx $1575. When you do your tax return then the low income tax offset ($1500) is applied. At THIS point you will have effectively paid $75 to the government. In 2012 you would not have paid the tax at all.
I see your point, during the 2010-11 year $1,575 would have been paid during the year, then $1,500 refunded, leaving the net $75.
With the proposed new system, as you say, it would never have been paid in the first place, and you effectively get the savings earlier. Plus of course, that little bit extra.
so once again, we were all fooled by JG. so for someone who earns 65000, how would you work out the savings?