Repeal of the 2015-16 income tax cuts
The 2013-14 Budget Savings (Measures No. 1) Act 2014 has received Royal Assent.
This Act repeals the personal income tax cuts that were legislated to commence on 1 July 2015.
As a result the tax free threshold for residents will remain at $18,200 and the second marginal tax rate will remain at 32.5%.
The first marginal tax rate for non-residents will remain at 32.5%
The Act also repeals changes to the Low income tax offset (LITO). As a result the maximum value of LITO will remain at $445, the withdrawal rate will remain at 1.5% and the threshold below which a person may receive LITO will remain at a taxable income threshold of $66,667
Legislation and supporting material
Labor 2013-14 Budget Savings (Measures No. 1)Act 2014External Link
Explanatory Memorandum.External Link
Refer to the joint media releaseExternal Link Legislation to repeal the carbon tax by the Prime Minister and the Minister for the Environment, dated 15 October 2013.
For more information refer to, Individual income tax rates.
The personal tax cuts and associated amendments to the low-income tax offset that were legislated to commence on 1 July 2015 have been repealed by Parliament.