Building a better tax system for hard-working Australians

The Australian Government is building a better tax system, so hard‑working Australians can keep more of their money. This includes tax relief for Australian taxpayers and small to medium‑sized businesses.

Better for you

The Australian Government has cut personal income taxes, so Australians can keep more of what they earn. The changes to the Personal Income Tax Plan, which are now law, include:

  • Increasing the low and middle income tax offset. This means that low and middle income earners, with taxable incomes less than $126,000 will receive tax relief of up to $1,080 for singles or up to $2,160 for dual income couples.
  • The low and middle income tax offset will benefit more than 10 million low and middle income earners once they have lodged their tax return for the 2018-19 income year.
  • Taxpayers will be able to see the value of their tax offset in the ‘tax estimate’ window when they prepare their tax return online using myTax, in the ‘non-refundable tax offsets’ section of their notice of assessment, or speak with their tax agent. Note: myTax is accessed through myGov.
  • 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 tax offset will be available for the 2018-19 to 2021-22 income years.
  • The Government will lock in the benefits of the low and middle income tax offset through changes to income tax thresholds and the low income tax offset from 1 July 2022. This will be achieved by increasing the top threshold of the 19 per cent tax bracket from $37,000 to $45,000 and the maximum amount of the low income tax offset from $445 to $700.
  • At its completion in 2024-25, the enhanced Personal Income Tax Plan will deliver a simpler tax system with only three tax rates. Australians earning between $45,000 and $200,000 will face a marginal tax rate of 30 per cent.

For more information on how you benefit, talk to your tax agent or visit the Budget and ATO websites:

Tax relief estimator
Building on the Personal Income Tax Plan
Low and middle income earners

Better for business

The Australian Government is building a better tax system for Australian businesses by providing tax relief for around 3.4 million small and medium-sized businesses. This includes:

  • Increasing the instant asset write-off to $30,000 and expanding access to include medium-sized businesses with an annual turnover of less than $50 million. Businesses can write-off multiple assets provided each asset costs less than the $30,000 threshold. The increased threshold and expanded eligibility applies from 7.30pm (AEDT) on 2 April 2019 (Budget night) to 30 June 2020.
  • Accelerating tax cuts for small and medium-sized companies with turnover under $50 million per annum by adjusting company tax rates to a more competitive 25 per cent tax rate by 2021-22.
  • Bringing forward increases to the tax discount rate for unincorporated small businesses with an annual turnover below $5 million (up to the existing cap of $1,000).

For more information, please visit the ATO website:

Instant asset write-off
Changes to company tax rates
Small business income tax offset
Business tax concessions

Better for Australians

The Australian Government is building a better tax system that rewards hard-working Australians.

The tax system has been simplified to give over 10 million Australians and around 3.4 million businesses benefits from tax relief.

  • The low and middle income tax offset will cut taxes for more than 10 million Australians.
  • Around 3.4 million businesses, who employ around 7.7 million workers, are eligible to access the Government’s $30,000 instant asset write-off.

This additional tax relief will put more money back into the pockets of hard-working Australians to spend, save or invest.