Better for you
The Australian Government is building a better tax system for hardworking Australians, through its Personal Income Tax Plan.
We’re simplifying the system and over 95% of Australian taxpayers will pay less tax, with immediate relief for low and middle income earners:
- New low and middle income tax offset – Immediate tax relief of up to $530 after individuals lodge their tax return for each income year from 2018-19 until 2021-22.
- Increasing income tax rate thresholds – Income tax thresholds will change over the next seven years so less tax is paid by Australian taxpayers. The first change took effect on 1 July 2018 with future changes in 2022-23 and 2024-25 to ensure that more people stay in the 32.5% tax bracket.
- Reducing the number of tax brackets – In 2024-25 the tax system will move from five tax brackets to four, simplifying the system.
Better for business
The Australian Government is building a better tax system for Australian businesses. The reforms deliver tax relief for more than three million small and medium businesses and include:
- Tax cuts for incorporated small and medium businesses, with turnover of less than $50 million per annum. These companies will move to a 25 per cent tax rate by 2021-22;
- Increasing the rate of the tax discount for unincorporated small businesses with turnover below $5 million (also known as the small business income tax offset);
- Increasing the instant asset write-off threshold from $20,000 to $25,000 and extending it until 30 June 2020. The increased threshold will apply from 29 January 2019, with legislation to be introduced to give effect to the measure; and
- Increasing the small business entity turnover threshold from $2 million to $10 million per annum, which has extended access to a range of tax concessions.
Better for Australia
The Australian Government is building a better tax system for hardworking Australians, by tackling tax avoidance.
We are continuing to take strong action to ensure big businesses and multinationals pay their fair share of tax. This revenue is used to fund the public services that benefit all Australians.
Government funding of the ATO’s Tax Avoidance Taskforce has helped the ATO to collect $5.6 billion in extra tax from multinationals, large corporations and wealthy individuals over the last two years.
As a result of the Multinational Anti-Avoidance Law (MAAL) more than $7 billion in sales is expected to be returned to the Australian tax base every year.