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Below is an overview from government relations firm Barton Deakin of the federal Government's tax cut package, which is now awaiting Royal Assent after being passed by both the House of Representatives and Senate.

The first stage of the tax cuts will affect tax returns now being lodged for the just-completed 2018-19 income year.

Text of Barton Deakin overview:

Barton Deakin Brief: Coalition Tax Cut Package Passes the Senate

5 July 2019

Overview

Yesterday, the Federal Government passed its flagship economic policy - a three stage system of income tax cuts totalling $158 billion. The Coalition won the vote 56-9 with only the Greens opposing and One Nation abstaining.

The Australian Labor Party sought amendments to split the third stage of cuts from the rest of the bill and allow the second stage to be delivered earlier than they would be under the Coalition's current plan. Despite this, however, they waved the legislation through the Parliament.

Motivations

The support of the Senate crossbench was crucial to passing the legislation. Senator Bernadi had already determined to vote with the Government on the bill, but it wasn't until Wednesday night that Centre Alliance Senators and Independent Jacqui Lambie stated that they would also support the Government's position on the legislation.

Previously, Senator Lambie had stated that she would only support the Government's proposal if Tasmania's $157 million of social housing debt was waived.

The Senator has admitted that whilst there has been no formal arrangement, she will engage with the Government in good faith negotiations about Tasmania's social housing debt in exchange for her support.

Similarly, Centre Alliance Senators Patrick and Griff had also stated that they wouldn't support the legislated tax package unless the Coalition agreed to move gas supply reforms through the Parliament.

Again, whilst there has been no formal agreement, it is expected that the Government will seek to pass reform legislation in the next Parliamentary sitting period.

Unpacking the tax cut package

The first of three tax cuts will come into effect from next week and will affect up to 10 million Australians. The three stages are as follows:

Stage 1 from FY2018-19:

- Low- and middle-income tax offset will be increased to provide up to $1080 of tax relief
to singles or up to $2160 for dual income families.

- Individuals with taxable income up to $37,000 will receive tax relief up to $255

- Individuals with taxable income between $37,001 and $47,999 will receive tax relief between $255 and $1080

- Individuals with taxable income between $48,000 and $90,000 will receive the full tax relief of $1080

- Individuals with taxable income between $90,001 and $126,000 will receive gradually declining offsets down from $1080

Stage 2 from FY2022-23:

- The 19 per cent tax bracket will have the $41,000 threshold increased to $45,000

- Low income tax offset will increase from $645 to $700

Stage 3 from FY2024-25:

- 32.5 per cent marginal tax rate will be reduced to 30 per cent

- Increasing the middle tax bracket from $120,000 to $200,000 thus eliminating the 37 per cent marginal tax bracket

- From 1 July 2024, Individuals with taxable income between $45,000 and $200,000 will
be taxed at the 30 per cent marginal tax rate

To read the Prime Minister's media release, click here: https://www.pm.gov.au/media/delivered-lower-taxes-hard-working-australians.

To read the Budget overview of the tax package, click here: https://www.budget.gov.au/2019-20/content/tax.htm.

(https://bartondeakin.com/app/uploads/2019/07/Barton-Deakin-Brief-Tax-Package.pdf)

(Additional paragraph breaks included to make the document easier to read)
 

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Discussion Starter · #4 · (Edited)

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Discussion Starter · #6 · (Edited)
So am I right is saying if you earn less than 30k taxable income you get nothing? If so bring back Rudd!
If your taxable income is between $22,000 and $30,000, your annual reduction in tax under the stage 1 tax cuts is $55.

Stages 2 and 3 won't provide any additional income tax cuts for this taxable income range.

(See the table in https://www.budget.gov.au/2019-20/content/tax.htm.)
 

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Australia is for rich people, its designed for rich , look at this, More tax breaks for the rich, Nothing for the poor.
 

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Australia is for rich people, its designed for rich , look at this, More tax breaks for the rich, Nothing for the poor.
Loooolllll... Really? Nothing for the poor? Its only the stage 3 that gives cuts for those who earn 200k+... What do you want 60k tax free? Seriously people are never happy - always whinging...
 

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So am I right is saying if you earn less than 30k taxable income you get nothing? If so bring back Rudd!
people are tired of just surviving there sh#t life watching others live in mansions and eating cavier and driving 2019 models automobiles.
 

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people are tired of just surviving there sh#t life watching others live in mansions and eating cavier and driving 2019 models automobiles.
Doing uber /uber eats ain't getting you rich....

Itd doesn't come free... Stop whinging - that ain't gonna get you rich either
 
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