The Government’s Personal Income Tax Plan, as announced in the 2018-19 Federal budget, has been passed by Parliament.
There will be:
- changes to income tax rate thresholds in the 2018-19, 2022-23 and 2024-25 income years
- a new low and middle income tax offset to reduce the tax payable by low and middle income earners in the 2018-19, 2019-20, 2020-21 and 2021-22 income years
- a new low income tax offset from the 2022-23 income year (to replace both the new low and middle income tax offset and the current Low Income Tax Offset ).
The following table outlines the updated rates and thresholds along with the updated offset entitlements linked to these changes.
| Rate (%) | New tax thresholds
From 1 July 2018 |
New tax thresholds
From 1 July 2022 |
New tax thresholds
From 1 July 2024 |
|---|---|---|---|
| Tax free | 0 – 18,200 | 0 – 18,200 | 0 – 18,200 |
| 19 | 18,201 – 37,000 | 18,201 – 41,000 | 18,201 – 41,000 |
| 32.5 | 37,001 – 90,000 | 41,001 – 120,000 | 41,001 – 200,000 |
| 37 | 90,001 – 180,000 | 120,001 – 180,000 | – |
| 45 | >180,000 | >180,000 | >200,000 |
| New low and middle income tax offset | Up to 530 | – | – |
| Current Low Income Tax Offset | Up to 445 | – | – |
| New low income tax offset | Up to 645 | Up to 645 |