Tuesday, 3 July 2018

Income tax relief for all taxpayers

The Turnbull Government has delivered income tax relief for hard-working Australian families commencing in the 2018-19 financial year. In Casey, almost 65,000 taxpayers will be rewarded for their hard work both now and into the future.

The Turnbull Government has delivered income tax relief for hard-working Australian families commencing in the 2018-19 financial year. In Casey, almost 65,000 taxpayers will be rewarded for their hard work both now and into the future.

In passing our Personal Income Tax plan through the Parliament, the Government has ensured all Australians paying tax will be better off.

Taxes in this country will now be lower, fairer and simpler.

This is a plan that all Australians share in and will benefit from. It is a plan where all working Australians win. Your income is your money. You earned it. You deserve to keep more of it.

Our plan is fair. Australia will continue to have a progressive income tax system, with those on the highest incomes paying most of the tax. Higher income earners will account for an even greater share of tax revenue than they do today.

The Government’s changes will be implemented over three steps:

One. Tax relief for middle and low income earners now

In 2018-19, over 10 million taxpayers will get tax relief, with 4.4 million Australians receiving the full $530 benefit.

Two. Lifting tax brackets, to protect Australians from the impact of ‘bracket creep’

The $87,000 tax threshold will increase to $90,000 in 2018-19 and then to $120,000 in 2022-23.

The tax relief provided under the offset in step 1 will also be implemented by increasing the $37,000 tax threshold to $41,000 in 2022-23, and lifting the low income tax offset to $645.

Three. Ensuring more Australians pay less tax by making personal taxes simpler

By removing an entire tax bracket, around 94 per cent of taxpayers will be taxed at the 32.5 per cent rate or less.

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