The Government's income tax cuts have been passed by the Senate.

Senate crossbenchers Jacqui Lambie and the Centre Alliance confirmed their support on Thursday morning, clearing the path for the new laws, which independent Cory Bernardi has long supported.

It is the second major tax cut in two years.

This is what that means for you.

This year: Modest cuts for most Australians

Modest tax cuts are available to millions of Australians almost immediately.

People earning between about $21,000 and up to $126,000 in the 2018-19 financial year will receive a boost.

But the laws apply unevenly across this group.

Income in 2018-19 Tax cut $25,000 $255 $40,000 $580 $60,000 $1,080 $90,000 $1,215 $120,000 $315

There will be no increase for those on Newstart.

In four years: Boost for wealthier Australians

In 2022-23, a second phase of tax cuts arrive.

Ultimately, wealthier Australians will pay less due to a combination of changes to tax offsets and income thresholds.

Although this group mostly missed out on the benefits of stage one, in four years' time they will be the big winners.

Those earning $120,000 or more will be $2,565 better off each year.

In six years: Boon for wealthiest Australians

Two years further down the track, the most controversial component of the package kicks in.

One whole tax threshold will be removed, leaving just four, and the tax rate for another threshold will be cut.

It will mean that once someone earns $45,000 in one year, every additional dollar they bring in that year will be taxed at the same rate — 32 per cent — up to $200,000.

This delivers massive cuts for those with an income close to $200,000.

For example, someone on $180,000 will be $8,640 better off.

Income Tax cut from 2018-19 Tax cut from 2022-23 Tax cut from 2024-25 $30,000 $255 per year $255 per year $255 per year $60,000 $1,080 per year $1,080 per year $1,455 per year $90,000 $1,215 per year $1,215 per year $2,340 per year $120,000 $315 per year $2,565 per year $4,440 per year $150,000 $135 per year $2,565 per year $6,540 per year $180,000 $135 per year $2,565 per year $8,640 per year

So, how do people feel about the new system?

There have been critics and champions of the Government's new plan since it was announced, and the people whose income is actually getting affected by this new plan run the gamut of views as well.

We spoke to some of them.

The high-income earner

Kate Cuthbertson will get the maximum benefit from stage three of the Government's tax plan, which will see people earning more than $200,000 better off by $11,640 a year.

"Not sure it will make an enormous amount of difference to me," she told 7.30.

She feels the $16 billion Treasury estimates it will cost for the stage three cuts could be better spent elsewhere.

"I'm certainly a very fortunate member of my family to have been able to earn a decent income, but my grandfather was a wharfie and a union man, and my mother was a teacher and worked very hard as a single mum," she said.

"So, for me, I have a lot of sympathy for people that aren't necessarily in the position I am now."

The single working mother

For 47-year-old single mum Rosie Serovska, the first stage of the Government's tax cuts will make a big difference.

She earns between $60,000 and $70,000 a year and said it was "an extreme juggle" to be both working part-time and taking care of her six-year-old son.

"Pretty much everything I do revolves around money, all the decisions that are made for the household are always going to be revolving around money," she told 7.30.

With an income of less than $90,000 a year, Ms Serovska will be eligible for the $1,080 tax cut this year.

"It would be a huge relief to have a bit of tax back," she said.

"It just means a bit of extra money in my pocket, really, to be able to do some of the things that I've been putting off for a long time."

The unemployed

Laura Henning and her partner, Chris Hombsch, are both unemployed.

She is on a parenting payment and he is on Newstart while training to be a carpenter.

Neither of them will be receiving any extra cash under the Government's plan.

Newstart is currently set at $501.70 per person for people who are partnered.

Ms Henning said she was not against some tax relief, but hopes people remember those who are missing out.

"I think the vast majority of people are struggling at the moment, and I don't want to take anything away from people, but I think you need to look at the whole system and work out where there's problems within the system that you can fix so that it's easier for people," she said.

She said some extra support would make a big difference.

"Raising the base wage of benefits would definitely be helpful — a lot more helpful than a lump sum payment," she said.

"Because it just means you've always got that little bit of extra cash coming in."