On 9 May 2018 the Treasury Laws Amendment (Personal Income Tax Plan) Bill 2018 was intoduced to the House of Representatives. This Bill seeks to amend the ITAA 1936, ITAA 1997 and TAA 1953 to:
- Introduce a low and middle income tax offset for the income years ending 30 June 2019 to 30 June 2022.
- Merge the existing low income tax offset and the new low and middle income offset into a new low income tax offset from the year ending 30 June 2023 onward.
This Bill also seeks to amend the Income Tax Rates Act 1986 (Cth) to progressively increase the income tax rate thresholds in the 2018-19, 2022-23 and 2024-25 income years, and Income Tax Assessment (1936 Act) Regulation 2015 (Cth) and five other Acts to make consequential amendments. These changes were announced in the Federal Government’s 2018-19 Budget.
For a detailed explanation of these changes and other 2018-19 Budget measures, please see our earlier publication 2018 Australian Federal Budget insight.