✦ Plain-English Summary

Treasury Laws Amendment (Tax Relief So Working Australians Keep More Of Their Money) Bill 2019

What it does

This bill increases tax offsets (rebates) for Australian workers earning under about $126,000 per year. It raises the threshold at which these offsets start to phase out and adjusts how much tax relief people in different income brackets get.

Why it matters

If you're a working Australian on a low to middle income, you'll keep more of your paycheck. The changes mean less tax paid across the board for earners below the income caps, putting money directly back in your pocket.

Key details

• Income thresholds adjusted: The top earner eligible for the Low and Middle Income Tax Offset rises from $125,333 to $126,000
• Tax offset amounts increased: For example, workers earning under $37,000 now get a $255 offset; those earning $37,000–$48,000 get $255 plus 7.5% of income above $37,000
• Applies to four tax years: The changes apply to assessments from 2018-19 through 2021-22, so they're already in effect if you've filed recent returns

Official Description

Amends the: Income Tax Assessment Act 1997 to: increase the base and maximum amounts of the low and middle income tax offset to $255 and $1080, respectively, for the 2018-19, 2019-20, 2020-21 and 2021-22 financial years; and increase the maximum amount of the low income tax offset from $645 to $700 from the 2022-23 financial year; and Income Tax Rates Act 1986 to reduce the tax payable by individuals from the 2022-23 financial year by increasing the top threshold of the 19 per cent income tax bracket from $41 000 to $45 000, and from the 2024-25 financial year by reducing the 32.5 per cent income tax rate to 30 per cent.

No formal division recorded

This bill passed by voice vote — parliament agreed without calling a formal count. A division is only recorded when a member explicitly requests one.

No votes yet.

No votes were recorded for this bill.