House of Representatives
Tax Laws Amendment (Personal Income Tax Reduction) Bill 2004
Explanatory Memorandum
(Circulated by authority of the Treasurer, the Hon Peter Costello, MP)General outline and financial impact
Reducing personal income tax
Schedule 1 to this bill amends the Income Tax Rates Act 1986 to provide for increases in personal income tax thresholds for the 42% and 47% tax brackets.
Date of effect: The increases in thresholds will take effect in two stages: stage one from 1 July 2004 and stage two from 1 July 2005.
Proposal announced: 2004-2005 Budget.
Financial impact: $1.925 billion in 2004-2005, $3.8 billion in 2005 2006, $4.25 billion in 2006-2007 and $4.75 billion in 2007-2008.
Compliance cost impact: Nil.