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A Bill for an Act to amend the law relating to taxation, and for related purposes
Administered by: Treasury
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Registered 05 Jul 2019
Introduced HR 02 Jul 2019
Table of contents.

2019

 

The Parliament of the

Commonwealth of Australia

 

HOUSE OF REPRESENTATIVES

 

 

 

 

Presented and read a first time

 

 

 

 

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

 

No.      , 2019

 

(Treasury)

 

 

 

A Bill for an Act to amend the law relating to taxation, and for related purposes

  

  


Contents

1............ Short title............................................................................................. 1

2............ Commencement................................................................................... 1

3............ Schedules............................................................................................ 2

Schedule 1—Low and Middle Income tax offset and Low Income tax offset      3

Income Tax Assessment Act 1997                                                                              3

Schedule 2—Personal income tax reform                                                               5

Income Tax Rates Act 1986                                                                                        5

 

 


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

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.  The whole of this Act

The day 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Note:          This table relates only to the provisions of this Act as originally enacted.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 1Low and Middle Income tax offset and Low Income tax offset

  

Income Tax Assessment Act 1997

1  Paragraphs 61‑105(1)(b) and (2)(c)

Omit “$125,333”, substitute “$126,000”.

2  Subsection 61‑107(1) (table)

Repeal the table (not including the note), substitute:

 

Amount of your tax offset

Item

If your relevant income:

The amount of your tax offset is:

1

does not exceed $37,000

$255

2

exceeds $37,000 but is not more than $48,000

$255, plus an amount equal to 7.5% of the excess

3

exceeds $48,000 but is not more than $90,000

$1,080

4

exceeds $90,000 but is not more than $126,000

$1,080, less an amount equal to 3% of the excess

3  Subsection 61‑115(1) (table)

Repeal the table, substitute:

 

Amount of your tax offset

Item

If your relevant income:

The amount of your tax offset is:

1

does not exceed $37,500

$700

2

exceeds $37,500 but is not more than $45,000

$700, less an amount equal to 5% of the excess

3

exceeds $45,000 but is not more than $66,667

$325, less an amount equal to 1.5% of the excess

4  Application of amendments

The amendments of sections 61‑105 and 61‑107 of the Income Tax Assessment Act 1997 made by this Schedule apply in relation to assessments for the 2018‑19, 2019‑20, 2020‑21 or 2021‑22 income year.

Schedule 2Personal income tax reform

  

Income Tax Rates Act 1986

1  Clause 1 of Part I of Schedule 7 (table dealing with tax rates for resident taxpayers for the 2022‑23 or 2023‑24 year of income)

Repeal the table (including the note), substitute:

 

Tax rates for resident taxpayers for the 2022‑23 or 2023‑24 year of income

Item

For the part of the ordinary taxable income of the taxpayer that:

The rate is:

1

exceeds the tax‑free threshold but does not exceed $45,000

19%

2

exceeds $45,000 but does not exceed $120,000

32.5%

3

exceeds $120,000 but does not exceed $180,000

37%

4

exceeds $180,000

45%

Note:          The above table will be repealed on 1 July 2026 by the Treasury Laws Amendment (Personal Income Tax Plan) Act 2018.

2  Clause 1 of Part I of Schedule 7 (table dealing with tax rates for resident taxpayers for the 2024‑25 year of income or a later year of income)

Repeal the table, substitute:

 

Tax rates for resident taxpayers for the 2024‑25 year of income or a later year of income

Item

For the part of the ordinary taxable income of the taxpayer that:

The rate is:

1

exceeds the tax‑free threshold but does not exceed $45,000

19%

2

exceeds $45,000 but does not exceed $200,000

30%

3

exceeds $200,000

45%

3  Clause 1 of Part III of Schedule 7 (table dealing with tax rates for working holiday makers for the 2022‑23 or 2023‑24 year of income)

Repeal the table (including the note), substitute:

 

Tax rates for working holiday makers for the 2022‑23 or 2023‑24 year of income

Item

For the part of the taxpayer’s working holiday taxable income that:

The rate is:

1

does not exceed $45,000

15%

2

exceeds $45,000 but does not exceed $120,000

32.5%

3

exceeds $120,000 but does not exceed $180,000

37%

4

exceeds $180,000

45%

Note:          The above table will be repealed on 1 July 2026 by the Treasury Laws Amendment (Personal Income Tax Plan) Act 2018.

4  Clause 1 of Part III of Schedule 7 (table dealing with tax rates for working holiday makers for the 2024‑25 year of income or a later year of income)

Repeal the table, substitute:

 

Tax rates for working holiday makers for the 2024‑25 year of income or a later year of income

Item

For the part of the taxpayer’s working holiday taxable income that:

The rate is:

1

does not exceed $45,000

15%

2

exceeds $45,000 but does not exceed $200,000

30%

3

exceeds $200,000

45%