More than 10 million Australians will start to receive immediate tax relief from next week following the passage of Legislation through the Parliament today.
The Coalition Government has delivered on its promise, as outlined in this year’s Budget, to build a better tax system and provide more tax relief to hard-working Australians.
As a result, low and middle income earners will keep more of what they earn and have more money in their pockets. This will ultimately boost household consumption, which will be good for the overall economy.
The Treasury Laws Amendment (Tax Relief so Working Australians Keep More of Their Money) Bill 2019 will deliver a further $158 billion in tax relief, building on the already legislated Personal Income Tax Plan announced in the 2018-19 Budget.
Starting from next week, low and middle income earners with an income up to $126,000 will receive up to $1,080, or $2,160 for dual income couples, with the increased tax relief to apply from the 2018-19 income year.
The Bill has also locked in the benefits of low and middle income tax relief by increasing the top threshold of the 19 cents in the dollar tax bracket from $41,000 to $45,000 and by increasing the low income tax offset from $645 to $700 in 2022-23.
In combination with the legislated removal of the 37 per cent tax bracket in 2024-25, the Government is delivering structural reform to the tax system by reducing the 32.5 cents in the dollar tax rate to 30 cents in the dollar.
Together, these tax relief measures will create a flatter and better tax system that will improve incentives for hard-working Australians and ensure that 94 per cent of Australians will face a marginal tax rate no higher than 30 cents in the dollar in 2024-25. Once our plan is fully implemented, around 13.3 million taxpayers will pay lower taxes.
Australians voiced their loud and clear support for our comprehensive tax package at the election. They supported a tax system that rewards aspiration and encourages effort, and today we have delivered it.
Lower taxes are part of our plan for a stronger economy.