Tax cuts become law
The Government has announced that more than 10 million Australians will receive immediate tax relief following the passage of legislation through the Parliament.
The Bill increases the top threshold for the 19% tax rate from $41,000 to $45,000 and increases the low-income tax offset from $645 to $700 in 2022/23.
In combination with the legislated removal of the 37% tax bracket in 2024/25, the Government “is delivering structural reform to the tax system” by reducing the 32.5% tax rate to 30%.
Together, these tax relief measures are intended to create a flatter and better tax system that will reportedly ensure that 94% of Australians will face a marginal tax rate no higher than 30% in 2024/25.
Ref: Prime Minister’s media release, 4 July 2019