Contents
1............ Short title............................................................................................. 1
2............ Commencement................................................................................... 1
3............ Schedules............................................................................................ 2
Schedule 1—Amendments 3
Part 1—Repeals 3
A New Tax System (Luxury Car Tax) Act 1999 3
A New Tax System (Luxury Car Tax Imposition—Customs) Act 1999 3
A New Tax System (Luxury Car Tax Imposition—Excise) Act 1999 3
A New Tax System (Luxury Car Tax Imposition—General) Act 1999 3
A New Tax System (Wine Equalisation Tax) Act 1999 3
A New Tax System (Wine Equalisation Tax Imposition—Customs) Act 1999 4
A New Tax System (Wine Equalisation Tax Imposition—Excise) Act 1999 4
A New Tax System (Wine Equalisation Tax Imposition—General) Act 1999 4
Customs Tariff Act 1995 4
Customs Tariff (Anti‑Dumping) Act 1975 4
Excise Act 1901 4
Excise Tariff Act 1921 5
Fuel Tax Act 2006 5
Major Bank Levy Act 2017 5
Passenger Movement Charge Act 1978 5
Petroleum Excise (Prices) Act 1987 5
Product Stewardship (Oil) Act 2000 5
Tradex Duty Imposition (Customs) Act 1999 5
Tradex Duty Imposition (Excise) Act 1999 6
Tradex Duty Imposition (General) Act 1999 6
Tradex Scheme Act 1999 6
Treasury Laws Amendment (Personal Income Tax Plan) Act 2018 6
Part 2—Income tax and Medicare levy amendments 7
Income Tax Assessment Act 1936 7
Income Tax Assessment Act 1997 7
Income Tax Rates Act 1986 7
Medicare Levy Act 1986 9
Part 3—Fringe benefits tax amendments 10
Fringe Benefits Tax Act 1986 10
A Bill for an Act to amend the law relating to taxation, and for related purposes
The Parliament of Australia enacts:
1 Short title
This Act is the Lower Tax Act 2018.
2 Commencement
(1) Each provision of this Act specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.
| Commencement information |
| Column 1 | Column 2 | Column 3 |
| Provisions | Commencement | Date/Details |
| 1. Sections 1 to 3 and anything in this Act not elsewhere covered by this table | The day this Act receives the Royal Assent. | |
| 2. Schedule 1, Parts 1 and 2 | The first 1 July after this Act receives the Royal Assent. | |
| 3. Schedule 1, Part 3 | The first 1 April after this Act receives the Royal Assent. | |
Note: This table relates only to the provisions of this Act as originally enacted. It will not be amended to deal with any later amendments of this Act.
(2) Any information in column 3 of the table is not part of this Act. Information may be inserted in this column, or information in it may be edited, in any published version of this Act.
3 Schedules
Legislation that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.
Schedule 1—Amendments
Part 1—Repeals
A New Tax System (Luxury Car Tax) Act 1999
1 The whole of the Act
Repeal the Act.
A New Tax System (Luxury Car Tax Imposition—Customs) Act 1999
2 The whole of the Act
Repeal the Act.
A New Tax System (Luxury Car Tax Imposition—Excise) Act 1999
3 The whole of the Act
Repeal the Act.
A New Tax System (Luxury Car Tax Imposition—General) Act 1999
4 The whole of the Act
Repeal the Act.
A New Tax System (Wine Equalisation Tax) Act 1999
5 The whole of the Act
Repeal the Act.
A New Tax System (Wine Equalisation Tax Imposition—Customs) Act 1999
6 The whole of the Act
Repeal the Act.
A New Tax System (Wine Equalisation Tax Imposition—Excise) Act 1999
7 The whole of the Act
Repeal the Act.
A New Tax System (Wine Equalisation Tax Imposition—General) Act 1999
8 The whole of the Act
Repeal the Act.
Customs Tariff Act 1995
9 The whole of the Act
Repeal the Act.
Customs Tariff (Anti‑Dumping) Act 1975
10 The whole of the Act
Repeal the Act.
Excise Act 1901
11 The whole of the Act
Repeal the Act.
Excise Tariff Act 1921
12 The whole of the Act
Repeal the Act.
Fuel Tax Act 2006
13 The whole of the Act
Repeal the Act.
Major Bank Levy Act 2017
14 The whole of the Act
Repeal the Act.
Passenger Movement Charge Act 1978
15 The whole of the Act
Repeal the Act.
Petroleum Excise (Prices) Act 1987
16 The whole of the Act
Repeal the Act.
Product Stewardship (Oil) Act 2000
17 The whole of the Act
Repeal the Act.
Tradex Duty Imposition (Customs) Act 1999
18 The whole of the Act
Repeal the Act.
Tradex Duty Imposition (Excise) Act 1999
19 The whole of the Act
Repeal the Act.
Tradex Duty Imposition (General) Act 1999
20 The whole of the Act
Repeal the Act.
Tradex Scheme Act 1999
21 The whole of the Act
Repeal the Act.
Treasury Laws Amendment (Personal Income Tax Plan) Act 2018
22 The whole of the Act
Repeal the Act.
Part 2—Income tax and Medicare levy amendments
Income Tax Assessment Act 1936
23 Section 159N
Repeal the section.
Income Tax Assessment Act 1997
24 Section 13‑1 (table item headed “low income earner”)
Omit:
| general.................................................................................... | Subdivision 61‑D |
25 Subdivision 61‑D
Repeal the Subdivision.
26 Subsection 63‑10 (table item 17)
Repeal the table item.
27 Subsection 63‑10(1) (note 7)
Repeal the note.
Income Tax Rates Act 1986
28 Subsection 3(1) (definition of base rate entity)
Repeal the definition.
29 Subsection 3(1) (definition of tax‑free threshold)
Omit “$18,200”, substitute “$40,000”.
30 Subsection 23(2)
Omit all the words after “of a company”, substitute “is 20%”.
31 Paragraph 23(3)(b)
Omit all the words after “the standard”, substitute “component—20%”.
32 Paragraph 23(4)(b)
Omit “25%”, substitute “20%”.
33 Paragraph 23(4)(c)
Omit all the words after “the PDF”, substitute “component—20%”.
34 Paragraph 23(5)(b)
Omit “25%”, substitute “20%”.
35 Paragraph 23(6)(b)
Omit all the words after “not greater”, substitute “than $653”.
36 Subsection 23(7)
Omit all the words after “not be greater”, substitute “than 30% of the amount by which the taxable income of the company exceeds $49,999, if the company is a recognised medium credit union in relation to the year of income”.
37 Section 23AA
Repeal the section.
38 Section 25
Omit all the words after “to pay tax”, substitute “is 20%”.
39 Paragraph 1(b) of Part I of Schedule 7
Repeal the paragraph, substitute:
(b) 20% for each part of the ordinary taxable income of the taxpayer that exceeds the tax‑free threshold.
40 Clause 1 of Part I of Schedule 7 (tables)
Repeal the tables.
41 Paragraph 4(a) of Part I of Schedule 7
Omit “the table in clause 1 that is applicable to the year of income”, substitute “paragraph 1(b)”.
42 Paragraph 4(b) of Part I of Schedule 7
Omit “the rates in that table”, substitute “the rate in paragraph 1(b)”.
43 Paragraph 1(b) of Part II of Schedule 7
Repeal the paragraph, substitute:
(b) 20% of the ordinary taxable income of the taxpayer.
44 Clause 1 of Part II of Schedule 7 (tables)
Repeal the tables.
45 Paragraph 4(a) of Part II of Schedule 7
Omit “the table in clause 1 applicable to the year of income”, substitute “paragraph 1(b)”.
46 Paragraph 4(b) of Part II of Schedule 7
Omit “rates in that table”, substitute “rate in paragraph 1(b)”.
47 Clause 1 of Part III of Schedule 7
Repeal the clause, substitute:
1. The rate of tax on a taxpayer’s working holiday taxable income for a year of income is 20% for that part of the taxpayer’s working holiday taxable income that exceeds the tax‑free threshold.
Medicare Levy Act 1986
48 Section 6
Omit “2%” (wherever occurring), substitute “0%”.
49 Section 7
Omit “10%” (wherever occurring), substitute “0%”.
Part 3—Fringe benefits tax amendments
Fringe Benefits Tax Act 1986
50 Section 6
Omit “47%”, substitute “20%”.