Tax relief will encourage and reward working Australians and reduce cost pressures on households.
The plan has three parts.
One. Tax relief for middle and low income earners now.
Two. Protecting what Australians earn from the impact of bracket creep.
Three. Ensuring more Australians pay less tax by making personal taxes simpler. As a result of the plan around 94 per cent of taxpayers are projected to face a marginal tax rate of 32.5 per cent or less in 2024-25.
* taxable income is equal to an individual’s assessable income (such as salary and wages and interest from bank accounts) minus their allowable deductions.
** combined tax relief is the combined annual tax relief for the chosen annual taxable income over the period of 2018-19 to 2024-25.
The table provides stylised cameos based on the tax payable for an individual. The change in tax is calculated only taking into account the basic tax scales, low income tax offset and the low and middle income tax offset. Actual outcomes for many individuals and households would differ.
The tool is for illustrative purposes only. The estimates presented are all in comparison to headline tax rates and thresholds as at the 2017-18 financial year.
An individual’s circumstances may result in an actual tax outcome different than that generated by the estimator.