Tax thresholds |
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Tax rate |
From 1 July 2018 |
From 1 July 2022 |
From 1 July 2024 |
|
0% |
$0 - $18,200 |
$0 - $18,200 |
$0 - $18,200 |
|
19% |
$18,201 - $37,000 |
$18,201 - $45,000 |
$18,201 - $45,000 |
|
30% |
$45,001 - $200,000 |
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32.5% $37,001 - $90,000 |
$45,001 - $120,000 |
|
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37% |
$90,001 - $180,000 |
$120,001 - $180,000 |
- |
|
45% |
>$180,000 |
>$180,000 |
>$200,000 |
|
LMITO Up to $1,080 |
|
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LITO |
Up to $445 |
Up to $700 |
Up to $700 |
This round of tax cuts:
- Increases the top threshold of the 19% personal income tax bracket to $45,000 from 1 July 2022.
- Reduces the 32.5% marginal tax rate to 30% from 1 July 2024-2025.
LOW AND MIDDLE INCOME TAX OFFSET (LMITO) INCREASED. DATE OF EFFECT 2018-2019 UNTIL 2021-2022.
The low and middle income tax offset (LMITO) will increase from a maximum amount of $530 to $1,080 per annum and the base amount will increase from $200 to $255 per annum.
The LMITO will provide a reduction in tax of up to $255 for taxpayers with a taxable income of $37,000 or less. Between taxable incomes of $37,000 and $48,000, the value of the offset will increase at a rate of 7.5 cents per dollar to the maximum offset of $1,080. Taxpayers with taxable incomes between $48,000 and $90,000 will be eligible for the maximum offset of $1,080. From taxable incomes of $90,000 to $126,000 the offset will phase out at a rate of 3 cents per dollar.
The LMITO is received after the individual has lodged their tax return.
LOW INCOME TAX OFFSET (LITO) INCREASED. DATE OF EFFECT 1 JULY 2022.
From 1 July 2022, the Government will increase the low income tax offset (LITO) from $645 as legislated, to $700. The increased LITO will be withdrawn at a rate of 5 cents per dollar between taxable incomes of $37,500 and $45,000, instead of at 6.5 cents per dollar between taxable incomes of $37,000 and $41,000 as previously legislated under the plan. LITO will then be withdrawn at a rate of 1.5 cents per dollar between taxable incomes of $45,000 and $66,667.
MEDICARE LEVY THRESHOLDS INCREASED. DATE OF EFFECT 2018-2019.
The Medicare levy low income thresholds for singles, families, and seniors and pensioners will increase from the 2018-2019 income year.
Thresholds |
Current |
Proposed |
Singles |
$21,980 |
$22,398 |
Family |
$37,089 |
$37,794 |
Single seniors and pensioners |
$34,758 |
$35,418 |
Family seniors and pensioners |
$48,385 |
$49,304 |
Dependent child or student |
$3,406 |
$3,471 |