BUDGET 2020
The Government is continuing to take decisive action to protect Australians and the economy from the effects of the coronavirus. This situation is unprecedented and there remains a high degree of uncertainty surrounding how the virus will evolve and its full economic impacts. This uncertainty makes it extremely difficult to formulate reliable economic and fiscal estimates over the next few months.
The government has therefore announced that due to the coronavirus pandemic, the 2020-21 budget will be deferred until Tuesday the 6th of October 2020.
This will provide more time for the economic and fiscal impacts of the coronavirus, both in Australia and around the world, to be better understood. It will also ensure that the 2020-21 Budget can set out the path to economic recovery.
Previous Announcements
- Immediate tax relief for low- and middle-income earners of up to $1,080 for singles or up to $2,160 for dual income families to ease the cost of living
- Backing small and medium-sized businesses through tax relief and by increasing and expanding access to the instant asset write-off
Increased Low and Middle Income Tax Offset (LMITO)
For the years from 2018-19 through to 2021-22 the LMITO base amount will increase from $200 to $255; the maximum amount will increase from $530 to $1080
The LMITO will be available subject to revised taxable income tests as follows:
| Income | Offset |
| up to $37,000 | $255 |
| $37,001 to $48,000 | $255 plus 7.5 cents for each dollar over $37,000 |
| $48,001 to $90,000 | $1,080 |
| $90,001 to $126,000 | $1,080 less 3 cents for each dollar over $90,000 |
As before, the LMITO will be paid in arrears by inclusion in the tax assessment after tax return lodgement.
Change in tax scales
- From 1 July 2022 the ceiling of the 19% bracket will be increased from $41,000 to $45,000
- From 1 July 2024, the 32.5% marginal tax rate will be reduced to 30%.
Increase in the new Low Income Tax Offset
- Under existing legislation the new LITO of $645 replaces both LITO and LMITO from 1 July 2022
- Under the Budget 2019 proposals from 1 July 2022 the new LITO will be increased from $645 to $700 with a withdrawal rate of 5% between taxable incomes of $37,500 and $45,000, (instead of at 6.5% between taxable incomes of $37,000 and $41,000 as previously legislated). LITO will then be withdrawn at a rate of 1.5% between taxable incomes of $45,000 and $66,667.
Medicare levy low income thresholds increase
The annual indexation of medicare low income thresholds for the 2018-19 financial year:
- Singles: will be increased from $21,980 to $22,398
- Family: increased from $37,089 to $37,794
- Single seniors and pensioners: increased from $34,758 to $35,418
- Family threshold for seniors and pensioners will be increased from $48,385 to $49,304
- For each dependent child or student, the family income thresholds increase by a further $3,471 (up from $3,406).
Small Business – Instant Write-off Asset
The Government earlier this year (2019) announced that from 29 January 2019 the small business (turnover up to $10 million) instant asset deduction limit is to be increased from $20,000 to $25,000 and availability extended until 30 June 2020.
Announced in the Budget – from 7:30 PM (AEDT) on 2 April 2019 (Budget night) until 30 June 2020:
- The small business (turnover up to $10 million) write-off limit is increased from $25,000 to $30,000, applied on a per asset basis.
- Medium sized businesses (turnover from $10 million to $50 million) will now also have access to the instant asset write off in respect of assets acquired from Budget night to 30 June 2020.
- (As before) the small business pooling (simplified depreciation) rules and suspension of the lockout rules continue until 30 June 2020.
Luxury Car Tax — increased refunds for primary producers and tourism operators
For vehicles acquired on or after 1 July 2019, eligible farmers and tourism operators will be able to apply for a refund of any luxury car tax paid up to a maximum of $10,000 (previously $3,000). Eligibility criteria and qualifying vehicles type to remain unchanged.
Super rules for older Australians
The Treasurer has announced some loosening of super contributions rules for older Australians:
- From July 1, 2020 Australians aged 65 and 66 will be able to make voluntary superannuation contributions, both concessional and non-concessional, without meeting the Work Test. This will align the Work Test with the eligibility age for the Age Pension.
- The age limit for spouse contributions will be increased from 69 to 74 years.
- The age limit for access to the bring-forward arrangements be extended to those aged 65 and 66.
The Government is building a tax system that rewards effort and underpins a strong economy
The Australian Government is lowering taxes for working Australians and backing small and medium‑sized business, while ensuring all taxpayers, including big business and multinationals, pay their fair share.
Lower taxes form part of our plan that is delivering a stronger economy and record job creation. The Government’s strong fiscal management means that it can deliver surpluses while also rewarding hard‑working Australians and supporting small businesses. Lower taxes will support consumption growth and strengthen our economy.
In this Budget the Government is further delivering on its promise to build a simpler and more competitive tax system.
Hard-working Australians should pay lower taxes. The Government supports a progressive tax system that eases cost of living pressures, provides reward for effort and sustains economic growth. These long‑term changes to the tax system will ensure that Australians keep more of the money they have worked hard to earn.
The Government will continue to back small business. Small and medium-sized businesses are the engine room of the economy and employ more than 7 million workers. We will continue to lighten their load so they can do what they do best.
The Government also believes everyone should pay their fair share of tax, particularly multinationals and big businesses.
Building a better tax system
1 Lower taxes for hard-working Australians
- Immediate tax relief for low- and middle‑income earners of up to $1,080 for singles or up to $2,160 for dual income families to ease the cost of living.
- Lowering the 32.5 per cent rate to 30 per cent in 2024-25, increasing the reward for effort by ensuring a projected 94 per cent of taxpayers will face a marginal tax rate of no more than 30 per cent.
- A further $158 billion of tax relief, building on our already legislated Personal Income Tax Plan.
2 Backing small business
- Increasing the instant asset write-off threshold to $30,000 and expanding access to medium‑sized businesses with an annual turnover of less than $50 million to help them reinvest in their business, employ more workers and grow. Around 3.4 million businesses will be eligible to benefit.
- Fast-tracking the company tax rate cut to 25 per cent for small and medium‑sized companies with an annual turnover of less than $50 million and increases to the unincorporated small business tax discount rate.
3 Making multinationals and big business pay their fair share
- $12.9 billion in tax liabilities raised from tax compliance activities since July 2016.
- New funding for the ATO to target tax avoidance by multinationals, big business and high‑wealth individuals.
Delivering lower taxes to hard‑working Australians
Building on the Government’s Personal Income Tax Plan
Our tax system must be fair for all Australians, one that provides reward for effort.
The Government is delivering a better tax system through its legislated Personal Income Tax Plan. The plan delivers lower taxes for low- and middle‑income earners. It puts more money back into the pockets of hard-working Australians.
Disciplined fiscal management has allowed the Government to enhance the plan, providing further tax relief to most Australian taxpayers.
From 2018-19, the Government will further reduce taxes for low- and middle‑income earners to ease cost of living pressures and support consumption growth. Low- and middle-income earners will have their tax reduced by up to $1,080 for single earners or up to $2,160 for dual income families, after lodging their tax returns as early as 1 July 2019.
In 2022-23, the Government will preserve the tax relief provided by the larger low and middle income tax offset by increasing the top threshold of the 19 per cent tax bracket from $41,000 to $45,000 and increasing the low income tax offset from $645 to $700.
In 2024-25, the Government will reduce the 32.5 per cent tax rate to 30 per cent, more closely aligning the middle tax bracket with corporate tax rates, improving incentives for working Australians and increasing the reward for effort.
In total, around 13.3 million taxpayers will pay permanently lower taxes in 2024-25 as a result of the Government’s enhanced plan. This is in addition to steps the Government has already taken to simplify the tax system by reducing the number of tax rates to three. In 2024-25, 94 per cent of taxpayers are projected to face a marginal rate of 30 per cent or less.
The Government’s enhanced plan maintains a progressive income tax system that also rewards effort and contributes to a strong economy.
As a result of the Government’s enhanced plan, around 94 per cent of Australian taxpayers are projected to face a marginal tax rate of 30 per cent or less in 2024-25.
The Government’s Personal Income Tax Plan means more Australians will face lower rates of tax
Immediate tax relief for hard‑working Australians
Easing the cost of living
Immediate relief to low- and middle‑income earners
The Government will increase the low and middle income tax offset, providing tax relief of up to $1,080 for singles or up to $2,160 for dual income families. The offset will be available for the 2018-19, 2019-20, 2020-21 and 2021-22 income years.
Individuals with taxable incomes up to $37,000 will have their tax reduced by up to $255. This will increase incrementally for those earning between $37,000 and $48,000. The maximum offset of $1,080 will be available to taxpayers with taxable incomes between $48,000 and $90,000. The offset then gradually reduces to zero at a taxable income of $126,000. The offset will be received as a lump sum on assessment after individuals lodge their tax returns.
This will assist more than 10 million Australians, with around 4.5 million individuals receiving the full offset for the 2018-19 income year.
The maximum offset of $1,080 is more than double the offset of $530 announced in the 2018-19 Budget. The base amount has also increased from $200 to $255 for those earning up to $37,000.
This additional tax relief will reward hard-working Australians, support consumption growth and ease cost of living pressures for low- and middle‑income earners by putting more of their money back in their pockets to spend, save or invest.
From 2022-23: Locking in the benefits of lower taxes
From 1 July 2022, the Government will preserve the tax relief from the larger low and middle income tax offset by increasing the top threshold of the 19 per cent tax bracket from $41,000 to $45,000 and increasing the low income tax offset from $645 to $700.
This builds on the changes in last year’s Budget, which increased the $37,000 threshold to $41,000 and the low income tax offset from $445 to $645 from 1 July 2022. It also builds on the increase to the top threshold of the 32.5 per cent tax bracket from $90,000 to $120,000 from 1 July 2022, which the Government has already made into law.
Reward for effort
Ensuring a projected 94 per cent of Australian taxpayers will face a marginal tax rate of 30 per cent or less in 2024‑25
From 2024-25: Further structural changes to the tax system to deliver lower taxes
In 2024-25, the Government will reduce the 32.5 per cent marginal tax rate to 30 per cent. This will more closely align the middle tax rate of the personal income tax system with corporate tax rates and improve incentives for working Australians.
The rate reduction builds on the changes the Government has already made into law, increasing the top threshold of the middle tax bracket from $120,000 to $200,000 and abolishing the 37 per cent tax bracket.
The result will be a simpler system comprising three tax rates: 19 per cent, 30 per cent and 45 per cent.
From 1 July 2024, Australians earning between $45,000 and $200,000 will face a marginal tax rate of 30 per cent. As a result of the Government’s reforms, individuals can earn more knowing that their extra income will not be taxed at a higher marginal rate.
Under the plan, in 2024-25, around 94 per cent of Australian taxpayers are projected to face a marginal tax rate of 30 per cent or less. This is compared with a projected 16 per cent who would have faced a marginal tax rate of 30 per cent or less if the plan was not in place, and 63 per cent who would have faced a marginal tax rate of 32.5 per cent or less.
The Government’s enhanced plan will increase the rewards for effort and ensure that hard-working Australians will keep more of what they earn if they get a promotion or choose to work additional hours.
| Rates in 2017-18 | Thresholds in 2017-18 | New Rates in 2024-25 | New Thresholds in 2024-25 |
|---|---|---|---|
| Nil | Up to $18,200 | Nil | Up to $18,200 |
| 19 per cent | $18,201 – $37,000 | 19 per cent | $18,201 – $45,000 |
| 32.5 per cent | $37,001 – $87,000 | 30 per cent | $45,001 – $200,000 |
| 37 per cent | $87,001 – $180,000 | – | – |
| 45 per cent | Above $180,000 | 45 per cent | Above $200,000 |
| Low income tax offset in 2017-18 | Up to $445 | Low income tax offset in 2024-25 | Up to $700 |
A progressive tax system
Delivering a system that remains progressive and internationally competitive
Maintaining a progressive tax system
Australia has a progressive tax system which ensures that those with the greatest ability to pay contribute a larger share of personal income tax revenue, while also providing reward for effort and incentives to get ahead.
The Government will maintain a progressive tax system. It is projected that in 2024-25 around 60 per cent of all personal income tax will be paid by the highest earning 20 per cent of taxpayers, broadly similar to that cohort’s share if 2017-18 rates and thresholds were left unchanged. The share of personal income tax paid also remains similar for the top 1, 5 and 10 per cent of taxpayers.
Under our enhanced plan, an individual with taxable income of $200,000 earns 4.4 times more income than an individual with taxable income of $45,000, but in 2024‑25 will pay around 10 times more tax.
The enhanced plan will result in a better tax system, with greater reward for effort while ensuring top earners pay their share.
| Share of tax paid in 2017-18 | Share of tax paid in 2024-25 without the Government’s plan | Share of tax paid in 2024-25 with the Government’s plan | |
|---|---|---|---|
| Top 1% of taxpayers | 16.7% | 15.6% | 17.0% |
| Top 5% of taxpayers | 32.7% | 31.6% | 32.9% |
| Top 10% of taxpayers | 44.6% | 43.4% | 44.0% |
| Top 20% of taxpayers | 60.6% | 59.5% | 59.5% |
Remaining internationally competitive
Australia currently has relatively high rates of tax, cutting in at relatively low levels of income compared with other countries.
Australia’s top marginal tax rate cuts in at around 2.2 times average full-time earnings, compared with 4 times in Canada and the UK, and 8 times in the US. Without the changes announced in last year’s Budget, Australia’s ratio was projected to drop to around 1.7, reducing our international competitiveness and ability to attract and retain talent. Increasing the bottom threshold of the top tax bracket from $180,000 to $200,000 as legislated means that this ratio is now expected to fall more modestly to around 1.9.
Source: Treasury calculations, 2017 OECD Revenue Statistics and Tax Database.
Tax relief for hard‑working Australians
Australian taxpayers will pay less tax, with immediate relief for low- and middle‑income earners
| Taxable income ($) |
2017-18 tax liability* ($) |
Annual reduction in tax paid under the changes in the 2018-19 Budget ($) |
Additional annual reduction in tax paid under the changes in the 2019-20 Budget ($) |
Total annual reduction in tax paid (compared with 2017-18) ($) |
|---|---|---|---|---|
| 20,000 | 0 | 0 | 0 | 0 |
| 21,000 | 87 | 87 | 0 | 87 |
| 22,000 | 279 | 200 | 55 | 255 |
| 23,000 | 569 | 200 | 55 | 255 |
| 24,000 | 859 | 200 | 55 | 255 |
| 25,000 | 1,149 | 200 | 55 | 255 |
| 30,000 | 2,397 | 200 | 55 | 255 |
| 40,000 | 4,947 | 290 | 190 | 480 |
| 50,000 | 8,547 | 530 | 550 | 1,080 |
| 60,000 | 12,147 | 530 | 550 | 1,080 |
| 70,000 | 15,697 | 530 | 550 | 1,080 |
| 80,000 | 19,147 | 530 | 550 | 1,080 |
| 90,000 | 22,732 | 665 | 550 | 1,215 |
| 100,000 | 26,632 | 515 | 400 | 915 |
| 120,000 | 34,432 | 215 | 100 | 315 |
| 140,000 | 42,232 | 135 | 0 | 135 |
| 160,000 | 50,032 | 135 | 0 | 135 |
| 180,000 | 57,832 | 135 | 0 | 135 |
| 200,000 | 67,232 | 135 | 0 | 135 |
* The table provides stylised cameos based on the tax payable for an individual, excluding any transfer payments. The tax liability and reduction in tax is calculated only taking into account the basic tax scales, low income tax offset, low and middle income tax offset and the Medicare levy (with 2017-18 low-income thresholds). Actual outcomes for many individuals and households would differ.
Noah works as an electrician for a construction company and Sophia is a laboratory technician. They have one child. In the 2018-19 income year, Noah earns $66,000 and Sophia earns $54,000.
With the personal income tax relief provided in last year’s Budget and this Budget (together the ‘enhanced plan’), Noah and Sophia each pay $1,080 less tax and together Noah and Sophia are $2,160 better off for 2018-19 than under 2017‑18 rates and thresholds. They receive their combined tax relief of $2,160 after they lodge their 2018‑19 tax returns, which they may lodge as early as 1 July 2019. They will continue to benefit from tax relief in future years.
- Under 2017-18 rates and thresholds, Noah would pay tax of $14,307 and Sophia $9,987 for 2018‑19.
- Under the changes in last year’s Budget, Noah and Sophia would each pay $530 less tax for the 2018‑19 income year. The changes announced in this Budget build on this and increase the tax relief they each receive by $550 to a total of $1,080.
Guy is a newly graduated community pharmacist and Alex is an engineer. In the 2018-19 income year, Guy earns $60,000 and Alex earns $90,000.
Under the enhanced plan, Guy pays $1,080 less tax and Alex $1,215 less tax compared with 2017-18 rates and thresholds. Together, Guy and Alex pay $2,295 less tax for 2018‑19. They receive most of their combined tax relief of $2,295 after they lodge their 2018‑19 tax returns, which they may lodge as early as 1 July 2019.
- Under 2017-18 rates and thresholds, Guy would pay tax of $12,147 and Alex $22,732 for 2018‑19.
- Under the changes in last year’s Budget, Guy would pay $530 less tax, and Alex $665 less tax for the 2018‑19 income year. The changes announced in this Budget build on this to provide additional tax relief to Guy and Alex of $550 each. This brings total tax relief under the enhanced plan for Guy and Alex to $1,080 and $1,215 respectively.
Tom is a high school teacher and earns $67,000 in the 2018-19 income year. Tom is single.
Under the enhanced plan, Tom pays $1,080 less tax for 2018-19 and will continue to benefit in future years.
- Under 2017-18 rates and thresholds, Tom would pay tax of $14,662 for 2018‑19.
- Under the changes in last year’s Budget, Tom would pay $530 less tax for the 2018‑19 income year. The changes announced in this Budget build on this to increase the amount of tax relief by $550 to a total of $1,080.
Sam is 20 and is an apprentice chef. In 2018-19, she earns $28,000.
Under the enhanced plan, Sam pays $255 less tax for 2018‑19 compared with 2017‑18 rates and thresholds.
- Under 2017-18 rates and thresholds, Sam would pay tax of $1,977 for 2018‑19.
- Under the changes in last year’s Budget, Sam would pay $200 less tax compared with 2017‑18 rates and thresholds. The changes in this Budget build on this to increase the amount of tax relief by $55, providing total tax relief of $255 for 2018‑19.
Building a better tax system
Delivering lower taxes
| Taxable income ($) |
2017-18 tax liability* ($) |
Annual reduction in tax paid under the changes in the 2018-19 Budget ($) |
Additional annual reduction in tax paid under the changes in the 2019-20 Budget ($) |
Total annual reduction in tax paid (compared with 2017-18) ($) |
|---|---|---|---|---|
| 20,000 | 0 | 0 | 0 | 0 |
| 21,000 | 87 | 87 | 0 | 87 |
| 22,000 | 279 | 200 | 55 | 255 |
| 23,000 | 569 | 200 | 55 | 255 |
| 24,000 | 859 | 200 | 55 | 255 |
| 25,000 | 1,149 | 200 | 55 | 255 |
| 30,000 | 2,397 | 200 | 55 | 255 |
| 40,000 | 4,947 | 455 | 125 | 580 |
| 50,000 | 8,547 | 540 | 540 | 1,080 |
| 60,000 | 12,147 | 540 | 540 | 1,080 |
| 70,000 | 15,697 | 540 | 540 | 1,080 |
| 80,000 | 19,147 | 540 | 540 | 1,080 |
| 90,000 | 22,732 | 675 | 540 | 1,215 |
| 100,000 | 26,632 | 1,125 | 540 | 1,665 |
| 120,000 | 34,432 | 2,025 | 540 | 2,565 |
| 140,000 | 42,232 | 2,025 | 540 | 2,565 |
| 160,000 | 50,032 | 2,025 | 540 | 2,565 |
| 180,000 | 57,832 | 2,025 | 540 | 2,565 |
| 200,000 | 67,232 | 2,025 | 540 | 2,565 |
* The table provides stylised cameos based on the tax payable for an individual, excluding any transfer payments. The tax liability and reduction in tax is calculated only taking into account the basic tax scales, low income tax offset, low and middle income tax offset and the Medicare levy (with 2017-18 low-income thresholds). Actual outcomes for many individuals and households would differ.
Jenny is a dentist, and Victor is a librarian. In the 2018‑19 income year, Jenny earns $120,000 and Victor earns $61,000.
Under the enhanced plan, Jenny pays $315 less tax compared with 2017-18 rates and thresholds, paying $34,117 in tax for 2018-19. Victor receives tax relief of $1,080, paying $11,427 in tax. Together, Jenny and Victor are $1,395 better off for 2018-19 compared with 2017-18 rates and thresholds. They receive most of their combined tax relief of $1,395 after they lodge their 2018‑19 tax returns, which they may lodge as early as 1 July 2019.
In 2022-23, Jenny earns $130,000 and Victor $65,000. Under the enhanced plan, Jenny pays $2,565 less tax compared to 2017-18 rates and thresholds, with a tax liability of $35,767 and Victor pays $1,080 less tax, with a tax liability of $12,867 for 2022‑23. Together, Jenny and Victor are $3,645 better off for 2022-23, compared with 2017‑18 rates and thresholds.
Philippa is an accountant and earns $90,000 in the 2018-19 income year. She is a single mother caring for two children.
Under the enhanced plan, for 2018-19 Philippa pays $1,215 less tax compared with 2017-18 rates and thresholds, paying $21,517 in tax.
By 2022-23, Philippa is earning $100,000. For 2022‑23 Philippa pays $1,665 less tax under the enhanced plan compared with 2017-18 rates and thresholds.
Anthea is a cyber security specialist and earns $130,000 in the 2018-19 income year. Anthea is single.
Under the enhanced plan, Anthea pays $135 less tax for 2018-19 compared with 2017-18 rates and thresholds, paying a total of $38,197 in tax.
In 2022-23, with greater experience, Anthea is earning $170,000. Anthea pays $2,565 less tax for 2022‑23 compared with 2017-18 rates and thresholds, paying a total of $51,367 in tax for 2022-23.
Lin is an architect, married to Rohan who is at home caring for their young child.
Lin earns $90,000 in the 2018-19 income year. Under the enhanced plan, Lin pays $1,215 less tax for 2018-19 compared with 2017-18 rates and thresholds, paying $21,517 in tax.
In 2022-23, Lin earns $98,000. Lin pays $1,575 less tax for 2022-23 compared with 2017-18 rates and thresholds, paying $24,277 in tax for 2022-23.
Ed, a labourer, is married to Abigail, a retail assistant. Ed and Abigail have one child. In the 2018-19 income year, Ed earns $44,000 and Abigail earns $40,000.
Under the enhanced plan, Ed pays $780 less tax compared with 2017-18 rates and thresholds, paying a total of $5,607 in tax for 2018-19. Abigail pays $480 less tax, paying $4,467 in tax. Together Ed and Abigail are $1,260 better off for 2018‑19 compared with 2017‑18 rates and thresholds. They receive their combined tax relief of $1,260 after they lodge their 2018-19 tax returns, which they may lodge as early as 1 July 2019.
In 2022-23, Ed is earning $49,000 and Abigail $45,000. Under the enhanced plan, Ed and Abigail each pay $1,080 less tax compared with 2017-18 rates and thresholds, paying tax of $7,107 and $5,667 respectively for 2022-23. Together, Ed and Abigail pay $2,160 less tax for 2022-23.
More tax relief
Maintaining reward for effort
| Taxable income ($) |
2017-18 tax liability* ($) |
Annual reduction in tax paid under the changes in the 2018-19 Budget ($) |
Additional annual reduction in tax paid under the changes in the 2019-20 Budget ($) |
Total annual reduction in tax paid (compared with 2017-18) ($) |
|---|---|---|---|---|
| 20,000 | 0 | 0 | 0 | 0 |
| 21,000 | 87 | 87 | 0 | 87 |
| 22,000 | 279 | 200 | 55 | 255 |
| 23,000 | 569 | 200 | 55 | 255 |
| 24,000 | 859 | 200 | 55 | 255 |
| 25,000 | 1,149 | 200 | 55 | 255 |
| 30,000 | 2,397 | 200 | 55 | 255 |
| 40,000 | 4,947 | 455 | 125 | 580 |
| 50,000 | 8,547 | 540 | 665 | 1,205 |
| 60,000 | 12,147 | 540 | 915 | 1,455 |
| 70,000 | 15,697 | 540 | 1,165 | 1,705 |
| 80,000 | 19,147 | 540 | 1,415 | 1,955 |
| 90,000 | 22,732 | 675 | 1,665 | 2,340 |
| 100,000 | 26,632 | 1,125 | 1,915 | 3,040 |
| 120,000 | 34,432 | 2,025 | 2,415 | 4,440 |
| 140,000 | 42,232 | 2,925 | 2,915 | 5,840 |
| 160,000 | 50,032 | 3,825 | 3,415 | 7,240 |
| 180,000 | 57,832 | 4,725 | 3,915 | 8,640 |
| 200,000 | 67,232 | 7,225 | 4,415 | 11,640 |
* The table provides stylised cameos based on the tax payable for an individual, excluding any transfer payments. The tax liability and reduction in tax is calculated only taking into account the basic tax scales, low income tax offset, low and middle income tax offset and the Medicare levy (with 2017-18 low-income thresholds). Actual outcomes for many individuals and households would differ.
Clancy is a radiologist at a regional hospital and Bella works part time as an office administrator at the primary school of their two children. In the 2018-19 income year, Clancy earns $110,000 and Bella earns $34,000.
For 2018-19, Clancy pays $615 less tax under the enhanced plan compared with 2017-18 rates and thresholds, paying a total of $29,917 in tax, and Bella pays $255 less tax, paying a total of $2,982 in tax. Together, they pay $870 less tax for 2018‑19. Clancy and Bella receive most of their combined tax relief of $870 after they lodge their 2018-19 tax returns, which they may lodge as early as 1 July 2019.
In 2022-23, with extensive practical experience, Clancy earns $140,000. Bella earns $38,000. For 2022‑23, Clancy pays $2,565 less tax under the enhanced plan than under 2017-18 rates and thresholds, paying $39,667 in tax. Bella pays $380 less tax, paying $3,847 in tax. Together, they pay $2,945 less tax for 2022-23 compared with 2017-18 rates and thresholds.
In 2024-25, Clancy is earning $155,000 and Bella $40,000. Clancy pays $6,890 less tax under the enhanced plan compared with 2017-18 rates and thresholds, paying tax of $41,192 for 2024-25. Bella pays $580 less tax, paying $4,367 in tax. Together, Clancy and Bella are $7,470 better off for 2024-25 compared with 2017-18 rates and thresholds.
Amira, a lawyer, is married to Ali, a veterinarian. They have children. In each year from 2018-19 to 2024-25 they earn $100,000 and $90,000 respectively.
For 2018-19 together they pay $2,130 less tax under the enhanced plan compared with 2017-18 rates and thresholds, and together pay $47,234 in tax. They receive most of their combined tax relief of $2,130 after they lodge their 2018‑19 tax returns, which they may lodge as early as 1 July 2019.
- Under the changes in last year’s Budget, Ali and Amira would together pay $1,180 less tax for the 2018-19 income year. The changes announced in this Budget build on this and increase their combined tax relief by $950 to a total of $2,130.
Extending this out to 2024-25, with the 2022-23 and 2024-25 changes of the enhanced plan coming into effect, compared with 2017-18 rates and thresholds, their family receives cumulative tax relief of $19,660 over the period from 2018‑19 to 2024-25.
- Under the changes in last year’s Budget, Ali and Amira would together receive cumulative tax relief of $10,120 over the seven‑year period. The changes announced in this Budget build on this and increase their family’s cumulative tax relief by $9,540 to a total of $19,660.
Margaret is a surgeon and is married to Antony. In each year from 2018‑19 to 2024‑25 Margaret earns $250,000.
For 2018-19, Margaret pays $135 less tax under the enhanced plan compared with 2017-18 rates and thresholds, and pays $90,597 in tax.
Extending this out to 2024-25, with the 2022‑23 and 2024‑25 changes of the enhanced plan coming into effect, compared with 2017-18 rates and thresholds, Margaret receives cumulative tax relief of $17,310 over the period from 2018‑19 to 2024-25.
Tim is a part‑time podiatrist and Jessica is a software engineer. In each year from 2018-19 to 2024-25 they earn $50,000 and $130,000 respectively.
For 2018-19 they pay $1,215 less tax under the enhanced plan compared with 2017‑18 rates and thresholds, and together pay $45,664 in tax. They receive most of their combined tax relief of $1,215 after they lodge their 2018‑19 tax returns, which they may lodge as early as 1 July 2019.
Extending this out to 2024-25, with the 2022-23 and 2024-25 changes of the enhanced plan coming into effect, compared with 2017-18 rates and thresholds, they receive cumulative tax relief of $18,495 over the period from 2018‑19 to 2024‑25.
Backing small business
We have lowered the small business tax rate and in this Budget will increase and expand access to the instant asset write-off
Lowering the small business tax rate
The Government has provided lower taxes for around 3.4 million businesses employing around 7.1 million workers.
The Government has legislated lower tax rates for small and medium‑sized companies with turnovers below $50 million. Small and medium‑sized companies currently facing a 27.5 per cent rate will have a 25 per cent rate by 2021-22, which is five years earlier than previously planned. This compares to the standard company tax rate of 30 per cent.
An incorporated food van business with four part‑time employees makes $150,000 per year. As a result of the Government’s tax relief, the small business will have an extra $3,750 this year and $7,500 in 2021-22.
Fast-tracking these tax cuts will benefit around 970,000 small and medium per centsized companies that employ around 5.2 million workers.
The Government has also legislated to bring forward the increases to the unincorporated small business tax discount rate, rising from 8 per cent currently to 13 per cent in 2020-21 and to 16 per cent from 2021 per cent22 (up to the existing cap of $1,000). This will benefit around 2.4 million businesses, employing around 1.9 million workers.
The tax relief also helps medium‑sized employers. A company that operates regional tours with 28 employees and $8 million in turnover that makes an annual profit of $800,000 will retain an extra $20,000 this year and $40,000 in 2021-22 to invest, grow and employ more workers.
Greater incentives to invest and grow
Empowering Australian businesses to grow, invest and support a stronger economy
The Government is helping businesses invest and grow through the instant asset write-off.
In this Budget, the Government is increasing the instant asset write-off threshold to $30,000 until 30 June 2020. The threshold applies on a per asset basis, so eligible businesses can instantly write off multiple assets. This builds on the Government’s earlier announcement that the instant asset write-off threshold would be increased from $20,000 to $25,000 and extended to 30 June 2020. More than 350,000 businesses have already taken advantage of the instant asset write‑off.
The Government is also expanding access to the instant asset write-off to include medium‑sized businesses by increasing the annual turnover threshold from $10 million to $50 million. Around 22,000 additional businesses employing around 1.7 million workers will now be eligible to access the instant asset write-off.
These changes will benefit small and medium‑sized businesses and improve their cash flow as they will be able to immediately deduct purchases of eligible assets each costing less than $30,000.
Around 3.4 million businesses, employing around 7.7 million workers will be eligible.
The increased threshold and expanded eligibility will apply from 7.30pm (AEDT) on 2 April 2019 to 30 June 2020.
The Government’s changes ensure that more businesses continue to benefit from the instant asset write-off as they grow, supporting them to invest in assets, build their business and employ more workers.
Haylee and Martin own a company, HM Nurseries Pty Ltd, through which they operate several nurseries in Newcastle. HM Nurseries Pty Ltd has an aggregated turnover of $5.2 million and a taxable income of $150,000 for the 2019-20 income year. They employ 15 workers.
To continue to expand the business, and offer delivery services to clients, HM Nurseries Pty Ltd purchases two new vans halfway through the financial year. The vans cost $29,000 each, exclusive of GST.
Under previously announced arrangements, the vans each cost more than the $25,000 threshold for the instant asset write-off in the 2019-20 income year. This means they would be added to HM Nurseries Pty Ltd’s small business depreciation asset pool and depreciated by 15 per cent. HM Nurseries Pty Ltd would claim a tax deduction of $8,700 for the depreciation of the vans.
Under the new $30,000 instant asset write-off, HM Nurseries Pty Ltd would instead claim an immediate deduction of $58,000 for the purchase of the two vans in the 2019-20 income year, $49,300 more than under previously announced arrangements. This will help the business to invest, grow and employ more workers.
The Government’s changes mean that HM Nurseries Pty Ltd pays less tax, increasing its cash flow by over $13,500.
Mark owns a company, Lat Val Pty Ltd, through which he operates a food manufacturing business in the Latrobe Valley employing 60 staff. Lat Val Pty Ltd has an aggregated turnover of $25 million and a taxable income of $900,000 for the 2019-20 income year. Ordinarily Lat Val Pty Ltd would be too large to access the instant asset write-off, but the changes in the 2019‑20 Budget mean it can now benefit.
Lat Val Pty Ltd purchases 10 new commercial ovens halfway through the income year, at a cost of $12,000 each, exclusive of GST, to allow Lat Val Pty Ltd to expand its business and improve efficiency.
Under existing tax arrangements, Lat Val Pty Ltd would depreciate the new ovens using an effective life of 15 years. Choosing to use the diminishing value method, Lat Val Pty Ltd would claim a tax deduction of $800 per oven, a total deduction of $8,000 for the 2019-20 income year.
Under the new $30,000 instant asset write-off, Lat Val Pty Ltd would instead claim an immediate deduction of $120,000 for the purchase of the 10 ovens in the 2019‑20 income year, $112,000 more than under existing arrangements. This will help the business to invest, grow and employ more workers.
The Government’s changes mean that Lat Val Pty Ltd pays less tax, increasing its cash flow by $30,800.
Delivering for small business
The Government is reducing the cost of doing business, allowing over 3 million small businesses in Australia to grow and create more jobs
Making it easier, cheaper and quicker for small businesses to resolve tax disputes
- Created a dedicated Small Business Taxation Division within the Administrative Appeals Tribunal with dedicated case managers, a lower application fee and fast‑tracked decisions.
- Requiring the ATO to pay reasonable legal costs for the small business in certain circumstances when they challenge ATO decisions.
- Establishing a small business concierge service within the Australian Small Business and Family Enterprise Ombudsman’s office to provide advice and support.
Improving access to advice
- Establishing 10 tax clinics across metropolitan and regional Australia, as a 12 month pilot, which provide access to free advice to assist unrepresented small businesses and individuals on tax issues.
Improving access to finance
- Establishing the $2 billion Australian Business Securitisation Fund, which will enhance small businesses’ access to finance.
Making invoicing easier
- Establishing an e-Invoicing system for Australia which could save businesses an estimated $28 billion in transaction costs over 10 years and increase opportunities to trade globally.
Cutting red tape
- Streamlining GST reporting for around 2.7 million small businesses by reducing the number of BAS GST questions.
- Reducing financial reporting and audit costs for businesses currently subject to reportingobligations by more than $300 million over four years.
- Simplifying and expanding the current regulatory regime for employee share schemes, reducing the time and cost burden for small businesses.
Improving digital capability
- Creating a non-government organisation dedicated to improving small businesses’ digital capability.
Maintaining the integrity of the tax system
Making multinationals and big business pay their fair share
The Government is committed to maintaining the integrity and sustainability of Australia’s tax system where everyone pays their fair share of tax. This includes ensuring that multinationals pay the correct amount of tax on their Australian profits.
Tax avoidance creates an uneven playing field for the majority of Australian businesses doing the right thing. The Government is restoring fairness in the tax system.
What we have achieved
The Government has implemented more than a dozen measures to strengthen the integrity of Australia’s international tax framework. These measures include implementing the Multinational Anti-Avoidance Law, the Diverted Profits Tax, the G20/OECD Base Erosion and Profit Shifting (BEPS) recommendations, increased tax penalties for large entities, and establishing a Tax Avoidance Taskforce within the ATO.
As a result, since 1 July 2016, the ATO has raised $12.9 billion in tax liabilities against large public groups and multinationals, as well as wealthy individuals and associated groups.
Through the Government’s actions, Australia has some of the toughest laws in the world to combat corporate tax avoidance.
What more are we doing?
The Government is estimated to raise $400 million over four years by closing down tax loopholes that were only available to foreigners investing into Australia through stapled structures. If left as is, the forgone revenue could grow to billions of dollars.
Additionally, the Government is reforming the Petroleum Resource Rent Tax to ensure Australians receive a fair return for our petroleum resources while not discouraging investment.
The Government is now extending funding for the ATO Tax Avoidance Taskforce until 30 June 2023, with a focus on multinationals. This is estimated to raise a further $4.6 billion in tax liabilities over the next four years.
The Government will also provide $42.1 million over four years to the ATO to increase activities to recover unpaid tax and superannuation liabilities, including from large corporate entities and high wealth individuals.
Taking action on tax integrity
Completed
Introduced the Multinational Anti-Avoidance Law
Introduced the Diverted Profits Tax
Introduced protections for tax whistleblowers
Extended GST to imported digital products and services and on low value imported goods
Being implemented
Closing loopholes for stapled structures
Extending GST to offshore sellers of hotel bookings in Australia
Reforming the Petroleum Resource Rent Tax
New measures
Extending the ATO Tax Avoidance Taskforce to 2023, with a focus on multinationals, big business and high wealth individuals
Increasing engagement and on time payment of tax and superannuation liabilities by large corporate entities and high wealth individuals
Cracking down on organised crime and the black economy
Engaging in the black economy harms businesses doing the right thing and makes it harder for the Government to provide the essential services that Australians rely on. That is why the Government is continuing to combat the harm that the black economy is doing to honest individuals, businesses and the Australian community.
The Government has already taken action to reduce the impact of the black economy. Our measures are estimated to return over $5 billion to the budget to fund essential services. Since 1 July 2018:
- Businesses cannot manufacture, distribute, possess or use software to let them hide their sales to reduce the taxes they owe.
- The Australian Taxation Office has raised over $500 million in liabilities through nearly 106,000 interactions with businesses including over 5,500 mobile strike team visits, to tackle black economy behaviour.
- The Illicit Tobacco Taskforce has seized in excess of 71 tonnes of smuggled tobacco and approximately 103 million cigarettes, equivalent to more than $161 million in evaded tobacco duty.
From 1 July 2019, the Government will progress additional measures, including:
- Ensuring people in certain high‑risk industries cannot hide or under‑report their income.
- Making it harder for businesses to pay cash wages to staff while also evading their obligations to report the income.
- Requiring businesses to have a good tax record when tendering for large Government contracts.
In this Budget, the Government will strengthen the Australian Business Number (ABN) system to disrupt black economy behaviour and target ABN misuse, generating an additional $22.2 million gain to the budget over the forward estimates. This measure will better align an ABN holder’s obligations with community expectations of compliant and honest business behaviour.
Appendix: Summary of lower taxes for hard-working Australians
Summary of changes to rates and thresholds
| Rates from 2017-18 to 2023-24 | Thresholds in 2017-18 | New thresholds from 2018-19 to 2021-22 | New thresholds from 2022-23 to 2023-24 |
|---|---|---|---|
| Nil | Up to $18,200 | Up to $18,200 | Up to $18,200 |
| 19 per cent | $18,201 – $37,000 | $18,201 – $37,000 | $18,201 – $45,000 |
| 32.5 per cent | $37,001 – $87,000 | $37,001 – $90,000 | $45,001 – $120,000 |
| 37 per cent | $87,001 – $180,000 | $90,001 – $180,000 | $120,001 – $180,000 |
| 45 per cent | Above $180,000 | Above $180,000 | Above $180,000 |
| Low and middle income tax offset | – | Up to $1,080 | – |
| Low income tax offset | Up to $445 | Up to $445 | Up to $700 |
| Rates from 2024-25 | New thresholds from 2024-25 |
|---|---|
| Nil | Up to $18,200 |
| 19 per cent | $18,201 – $45,000 |
| 30 per cent | $45,001 – $200,000 |
| 45 per cent | Above $200,000 |
| Low income tax offset | Up to $700 |
Cumulative tax relief
2018-19 to 2024-25
The table below sums the annual benefit at different income levels under the enhanced Personal Income Tax Plan. The benefits are summed from 2018-19 through to the final year of the changes in 2024-25.
Cumulative tax relief and tax paid from 2018-19 to 2024-25*
| Taxable income | $30,000 | $50,000 | $80,000 | $90,000 | $120,000 | $140,000 | $160,000 | $200,000 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Tax paid ($) |
Tax relief ($) |
Tax paid ($) |
Tax relief ($) |
Tax paid ($) |
Tax relief ($) |
Tax paid ($) |
Tax relief ($) |
Tax paid ($) |
Tax relief ($) |
Tax paid ($) |
Tax relief ($) |
Tax paid ($) |
Tax relief ($) |
Tax paid ($) |
Tax relief ($) |
|
| 2018-19 | 2,142 | 255 | 7,467 | 1,080 | 18,067 | 1,080 | 21,517 | 1,215 | 34,117 | 315 | 42,097 | 135 | 49,897 | 135 | 67,097 | 135 |
| 2019-20 | 4,284 | 510 | 14,934 | 2,160 | 36,134 | 2,160 | 43,034 | 2,430 | 68,234 | 630 | 84,194 | 270 | 99,794 | 270 | 134,194 | 270 |
| 2020-21 | 6,426 | 765 | 22,401 | 3,240 | 54,201 | 3,240 | 64,551 | 3,645 | 102,351 | 945 | 126,291 | 405 | 149,691 | 405 | 201,291 | 405 |
| 2021-22 | 8,568 | 1,020 | 29,868 | 4,320 | 72,268 | 4,320 | 86,068 | 4,860 | 136,468 | 1,260 | 168,388 | 540 | 199,588 | 540 | 268,388 | 540 |
| 2022-23 | 10,710 | 1,275 | 37,335 | 5,400 | 90,335 | 5,400 | 107,585 | 6,075 | 168,335 | 3,825 | 208,055 | 3,105 | 247,055 | 3,105 | 333,055 | 3,105 |
| 2023-24 | 12,852 | 1,530 | 44,802 | 6,480 | 108,402 | 6,480 | 129,102 | 7,290 | 200,202 | 6,390 | 247,722 | 5,670 | 294,522 | 5,670 | 397,722 | 5,670 |
| 2024-25 | 14,994 | 1,785 | 52,144 | 7,685 | 125,594 | 8,435 | 149,494 | 9,630 | 230,194 | 10,830 | 284,114 | 11,510 | 337,314 | 12,910 | 453,314 | 17,310 |
* The cumulative tax relief is the sum of an individual’s tax relief provided by the enhanced Personal Income Tax Plan over the years from 2018-19, compared to 2017-18 settings. Tax paid is presented after incorporating the tax relief and includes the Medicare levy (with 2017-18 Medicare levy single low-income thresholds).
Dual income couple — equal income split
Change in household tax paid
| 2018-19 | 2022-23 | 2024-25 | |||||||
|---|---|---|---|---|---|---|---|---|---|
| Taxable Income – Spouse 1 ($) |
Taxable Income – Spouse 2 ($) |
Household Taxable Income ($) |
Tax liability in 2017-18 ($) |
Tax liability ($) |
Tax relief ($) |
Tax liability ($) |
Tax relief ($) |
Tax liability ($) |
Tax relief ($) |
| 30,000 | 30,000 | 60,000 | 4,794 | 4,284 | 510 | 4,284 | 510 | 4,284 | 510 |
| 35,000 | 35,000 | 70,000 | 6,894 | 6,384 | 510 | 6,384 | 510 | 6,384 | 510 |
| 40,000 | 40,000 | 80,000 | 9,894 | 8,934 | 960 | 8,734 | 1,160 | 8,734 | 1,160 |
| 45,000 | 45,000 | 90,000 | 13,494 | 11,784 | 1,710 | 11,334 | 2,160 | 11,334 | 2,160 |
| 50,000 | 50,000 | 100,000 | 17,094 | 14,934 | 2,160 | 14,934 | 2,160 | 14,684 | 2,410 |
| 55,000 | 55,000 | 110,000 | 20,694 | 18,534 | 2,160 | 18,534 | 2,160 | 18,034 | 2,660 |
| 60,000 | 60,000 | 120,000 | 24,294 | 22,134 | 2,160 | 22,134 | 2,160 | 21,384 | 2,910 |
| 65,000 | 65,000 | 130,000 | 27,894 | 25,734 | 2,160 | 25,734 | 2,160 | 24,734 | 3,160 |
| 70,000 | 70,000 | 140,000 | 31,394 | 29,234 | 2,160 | 29,234 | 2,160 | 27,984 | 3,410 |
| 75,000 | 75,000 | 150,000 | 34,844 | 32,684 | 2,160 | 32,684 | 2,160 | 31,184 | 3,660 |
| 80,000 | 80,000 | 160,000 | 38,294 | 36,134 | 2,160 | 36,134 | 2,160 | 34,384 | 3,910 |
| 85,000 | 85,000 | 170,000 | 41,744 | 39,584 | 2,160 | 39,584 | 2,160 | 37,584 | 4,160 |
| 90,000 | 90,000 | 180,000 | 45,464 | 43,034 | 2,430 | 43,034 | 2,430 | 40,784 | 4,680 |
| 100,000 | 100,000 | 200,000 | 53,264 | 51,434 | 1,830 | 49,934 | 3,330 | 47,184 | 6,080 |
| 110,000 | 110,000 | 220,000 | 61,064 | 59,834 | 1,230 | 56,834 | 4,230 | 53,584 | 7,480 |
| 120,000 | 120,000 | 240,000 | 68,864 | 68,234 | 630 | 63,734 | 5,130 | 59,984 | 8,880 |
| 130,000 | 130,000 | 260,000 | 76,664 | 76,394 | 270 | 71,534 | 5,130 | 66,384 | 10,280 |
| 140,000 | 140,000 | 280,000 | 84,464 | 84,194 | 270 | 79,334 | 5,130 | 72,784 | 11,680 |
| 160,000 | 160,000 | 320,000 | 100,064 | 99,794 | 270 | 94,934 | 5,130 | 85,584 | 14,480 |
| 180,000 | 180,000 | 360,000 | 115,664 | 115,394 | 270 | 110,534 | 5,130 | 98,384 | 17,280 |
| 200,000 | 200,000 | 400,000 | 134,464 | 134,194 | 270 | 129,334 | 5,130 | 111,184 | 23,280 |
*The table provides stylised cameos based on the tax payable for these households, excluding any transfer payments. The tax liability and tax relief are calculated only taking into account the basic tax scales, low income tax offset, low and middle income tax offset and the Medicare levy (with 2017-18 Medicare levy family and single low-income thresholds where relevant). Actual outcomes for many individuals and households would differ.
Dual income couple — two-thirds and one-third split
Change in household tax paid
| 2018-19 | 2022-23 | 2024-25 | |||||||
|---|---|---|---|---|---|---|---|---|---|
| Taxable Income – Primary Earner ($) |
Taxable Income – Spouse ($) |
Household Taxable Income ($) |
Tax liability in 2017-18 ($) |
Tax liability ($) |
Tax relief ($) |
Tax liability ($) |
Tax relief ($) |
Tax liability ($) |
Tax relief ($) |
| 40,200 | 19,800 | 60,000 | 5,019 | 4,524 | 495 | 4,419 | 600 | 4,419 | 600 |
| 46,900 | 23,100 | 70,000 | 8,029 | 6,777 | 1,253 | 6,694 | 1,335 | 6,647 | 1,383 |
| 53,600 | 26,400 | 80,000 | 11,398 | 10,063 | 1,335 | 10,063 | 1,335 | 9,848 | 1,550 |
| 60,300 | 29,700 | 90,000 | 14,589 | 13,254 | 1,335 | 13,254 | 1,335 | 12,872 | 1,718 |
| 67,000 | 33,000 | 100,000 | 17,689 | 16,354 | 1,335 | 16,354 | 1,335 | 15,804 | 1,885 |
| 73,700 | 36,300 | 110,000 | 20,694 | 19,359 | 1,335 | 19,359 | 1,335 | 18,641 | 2,053 |
| 80,400 | 39,600 | 120,000 | 24,088 | 22,558 | 1,530 | 22,468 | 1,620 | 21,583 | 2,505 |
| 87,100 | 42,900 | 130,000 | 27,592 | 25,810 | 1,782 | 25,638 | 1,955 | 24,585 | 3,007 |
| 93,800 | 46,200 | 140,000 | 31,393 | 29,347 | 2,046 | 28,927 | 2,466 | 27,677 | 3,716 |
| 100,500 | 49,500 | 150,000 | 35,194 | 33,214 | 1,980 | 32,427 | 2,768 | 30,927 | 4,268 |
| 107,200 | 52,800 | 160,000 | 38,995 | 37,216 | 1,779 | 35,926 | 3,069 | 34,176 | 4,819 |
| 113,900 | 56,100 | 170,000 | 42,796 | 41,218 | 1,578 | 39,426 | 3,371 | 37,426 | 5,371 |
| 120,600 | 59,400 | 180,000 | 46,597 | 45,220 | 1,377 | 42,952 | 3,645 | 40,675 | 5,922 |
| 134,000 | 66,000 | 200,000 | 54,199 | 52,984 | 1,215 | 50,554 | 3,645 | 47,174 | 7,025 |
| 147,400 | 72,600 | 220,000 | 61,712 | 60,497 | 1,215 | 58,067 | 3,645 | 53,584 | 8,128 |
| 160,800 | 79,200 | 240,000 | 69,215 | 68,000 | 1,215 | 65,570 | 3,645 | 59,984 | 9,231 |
| 174,200 | 85,800 | 260,000 | 76,718 | 75,503 | 1,215 | 73,073 | 3,645 | 66,384 | 10,334 |
| 187,600 | 92,400 | 280,000 | 85,072 | 83,794 | 1,278 | 81,184 | 3,888 | 72,784 | 12,288 |
| 200,000 | 100,000 | 300,000 | 93,864 | 92,814 | 1,050 | 89,634 | 4,230 | 79,184 | 14,680 |
* The table provides stylised cameos based on the tax payable for these households, excluding any transfer payments. The tax liability and tax relief are calculated only taking into account the basic tax scales, low income tax offset, low and middle income tax offset and the Medicare levy (with 2017-18 Medicare levy family and single low-income thresholds where relevant). Actual outcomes for many individuals and households would differ.
Single person household
Change in household tax paid
| 2018-19 | 2022-23 | 2024-25 | |||||
|---|---|---|---|---|---|---|---|
| Taxable Income ($) |
Tax liability in 2017-18 ($) |
Tax liability ($) |
Tax relief ($) |
Tax liability ($) |
Tax relief ($) |
Tax liability ($) |
Tax relief ($) |
| 30,000 | 2,397 | 2,142 | 255 | 2,142 | 255 | 2,142 | 255 |
| 35,000 | 3,447 | 3,192 | 255 | 3,192 | 255 | 3,192 | 255 |
| 40,000 | 4,947 | 4,467 | 480 | 4,367 | 580 | 4,367 | 580 |
| 45,000 | 6,747 | 5,892 | 855 | 5,667 | 1,080 | 5,667 | 1,080 |
| 50,000 | 8,547 | 7,467 | 1,080 | 7,467 | 1,080 | 7,342 | 1,205 |
| 55,000 | 10,347 | 9,267 | 1,080 | 9,267 | 1,080 | 9,017 | 1,330 |
| 60,000 | 12,147 | 11,067 | 1,080 | 11,067 | 1,080 | 10,692 | 1,455 |
| 65,000 | 13,947 | 12,867 | 1,080 | 12,867 | 1,080 | 12,367 | 1,580 |
| 70,000 | 15,697 | 14,617 | 1,080 | 14,617 | 1,080 | 13,992 | 1,705 |
| 75,000 | 17,422 | 16,342 | 1,080 | 16,342 | 1,080 | 15,592 | 1,830 |
| 80,000 | 19,147 | 18,067 | 1,080 | 18,067 | 1,080 | 17,192 | 1,955 |
| 85,000 | 20,872 | 19,792 | 1,080 | 19,792 | 1,080 | 18,792 | 2,080 |
| 90,000 | 22,732 | 21,517 | 1,215 | 21,517 | 1,215 | 20,392 | 2,340 |
| 100,000 | 26,632 | 25,717 | 915 | 24,967 | 1,665 | 23,592 | 3,040 |
| 110,000 | 30,532 | 29,917 | 615 | 28,417 | 2,115 | 26,792 | 3,740 |
| 120,000 | 34,432 | 34,117 | 315 | 31,867 | 2,565 | 29,992 | 4,440 |
| 130,000 | 38,332 | 38,197 | 135 | 35,767 | 2,565 | 33,192 | 5,140 |
| 140,000 | 42,232 | 42,097 | 135 | 39,667 | 2,565 | 36,392 | 5,840 |
| 160,000 | 50,032 | 49,897 | 135 | 47,467 | 2,565 | 42,792 | 7,240 |
| 180,000 | 57,832 | 57,697 | 135 | 55,267 | 2,565 | 49,192 | 8,640 |
| 200,000 | 67,232 | 67,097 | 135 | 64,667 | 2,565 | 55,592 | 11,640 |
* The table provides stylised cameos based on the tax payable for these households, excluding any transfer payments. The tax liability and tax relief are calculated only taking into account the basic tax scales, low income tax offset, low and middle income tax offset and the Medicare levy (with 2017-18 Medicare levy single low-income thresholds). Actual outcomes for many individuals and households would differ.
Household with single income earner
Change in household tax paid
| 2018-19 | 2022-23 | 2024-25 | |||||||
|---|---|---|---|---|---|---|---|---|---|
| Taxable Income – Primary Earner ($) |
Taxable Income – Spouse ($) |
Household Taxable Income ($) |
Tax liability in 2017-18 ($) |
Tax liability ($) |
Tax relief ($) |
Tax liability ($) |
Tax relief ($) |
Tax liability ($) |
Tax relief ($) |
| 30,000 | 0 | 30,000 | 1,797 | 1,542 | 255 | 1,542 | 255 | 1,542 | 255 |
| 35,000 | 0 | 35,000 | 2,747 | 2,492 | 255 | 2,492 | 255 | 2,492 | 255 |
| 40,000 | 0 | 40,000 | 4,438 | 3,958 | 480 | 3,858 | 580 | 3,858 | 580 |
| 45,000 | 0 | 45,000 | 6,638 | 5,783 | 855 | 5,558 | 1,080 | 5,558 | 1,080 |
| 50,000 | 0 | 50,000 | 8,547 | 7,467 | 1,080 | 7,467 | 1,080 | 7,342 | 1,205 |
| 55,000 | 0 | 55,000 | 10,347 | 9,267 | 1,080 | 9,267 | 1,080 | 9,017 | 1,330 |
| 60,000 | 0 | 60,000 | 12,147 | 11,067 | 1,080 | 11,067 | 1,080 | 10,692 | 1,455 |
| 65,000 | 0 | 65,000 | 13,947 | 12,867 | 1,080 | 12,867 | 1,080 | 12,367 | 1,580 |
| 70,000 | 0 | 70,000 | 15,697 | 14,617 | 1,080 | 14,617 | 1,080 | 13,992 | 1,705 |
| 75,000 | 0 | 75,000 | 17,422 | 16,342 | 1,080 | 16,342 | 1,080 | 15,592 | 1,830 |
| 80,000 | 0 | 80,000 | 19,147 | 18,067 | 1,080 | 18,067 | 1,080 | 17,192 | 1,955 |
| 85,000 | 0 | 85,000 | 20,872 | 19,792 | 1,080 | 19,792 | 1,080 | 18,792 | 2,080 |
| 90,000 | 0 | 90,000 | 22,732 | 21,517 | 1,215 | 21,517 | 1,215 | 20,392 | 2,340 |
| 100,000 | 0 | 100,000 | 26,632 | 25,717 | 915 | 24,967 | 1,665 | 23,592 | 3,040 |
| 110,000 | 0 | 110,000 | 30,532 | 29,917 | 615 | 28,417 | 2,115 | 26,792 | 3,740 |
| 120,000 | 0 | 120,000 | 34,432 | 34,117 | 315 | 31,867 | 2,565 | 29,992 | 4,440 |
| 130,000 | 0 | 130,000 | 38,332 | 38,197 | 135 | 35,767 | 2,565 | 33,192 | 5,140 |
| 140,000 | 0 | 140,000 | 42,232 | 42,097 | 135 | 39,667 | 2,565 | 36,392 | 5,840 |
| 160,000 | 0 | 160,000 | 50,032 | 49,897 | 135 | 47,467 | 2,565 | 42,792 | 7,240 |
| 180,000 | 0 | 180,000 | 57,832 | 57,697 | 135 | 55,267 | 2,565 | 49,192 | 8,640 |
| 200,000 | 0 | 200,000 | 67,232 | 67,097 | 135 | 64,667 | 2,565 | 55,592 | 11,640 |
* The table provides stylised cameos based on the tax payable for these households, excluding any transfer payments. The tax liability and tax relief are calculated only taking into account the basic tax scales, low income tax offset, low and middle income tax offset and the Medicare levy (with 2017-18 Medicare levy family and single low-income thresholds where relevant). Actual outcomes for many individuals and households would differ.