Treasury Laws Amendment (Tax Relief So Working Australians Keep More of Their Money) Bill 2019

The majority voted in favour of a motion to pass the bill in the Senate. In parliamentary jargon, they voted to read the bill for a third time. Since the bill was already passed in the House of Representatives, this vote means that it will now become law.

What does the bill do?

The bill was introduced to introduce further reductions in personal income tax rates, which were announced in the 2019–20 Budget. Specifically, it:

• increases the base and maximum amounts of the low and middle income tax offset to $255 and $1080, respectively, for the 2018-19, 2019-20, 2020-21 and 2021-22 financial years;
• increases the maximum amount of the low income tax offset from $645 to $700 from the 2022-23 financial year; and
• reduces the tax payable by individuals from the 2022-23 financial year by increasing the top threshold of the 19 per cent income tax bracket from $41 000 to $45 000, and from the 2024-25 financial year by reducing the 32.5 per cent income tax rate to 30 per cent.

Read more in the bills digest.