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.
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