In addition to changes to the taxation system introduced by the government last year, the Treasury Laws Amendment (Tax Relief So Working Australians Keep More Of Their Money) Bill 2019 brings in further changes over several years:
- The low and middle income tax offset over the financial years 2018-19 to 2021-22 will be increased, and the low income tax offset will be increased from the 2022-23 financial year.
- From I July 2022, the top threshold for the 19 per cent income tax bracket will increase from $41 000 to $45 000.
- From 1 July 2024, the 32.5 per cent income tax rate will reduce to 30 per cent.
Introducing the bill in the House of Representatives, the Treasurer, the Hon Josh Frydenberg MP, said the bill ‘lowers taxes for hardworking Australians. It puts more money in their pockets, it strengthens the economy, it rewards aspiration’.