Along with several other tax measures, on 2016 Federal Budget night, the Coalition (Liberal/NP) government announced the following personal tax measures:
- Increase in income tax threshold before 37% tax rate is applicable. The Coalition government has increased the income threshold before the personal marginal tax rate of 37% applies, from $80,000 to $87,000 from the 2016/2017 year.
This measure means the 32.5% tax rate applies for taxable income up to $87,000, and will mean a lower income tax bill from the 2016/2017 year (and accordingly from the 2017/2018 year onwards), for those currently earning more than $80,000.
For information on this change, and the current income tax rates, see SuperGuide articles Income tax cut for 2017/2018 year (and for 2016/2017 year) and Australian income tax rates for 2017/2018 and 2016/2017 years.
- Removal of Temporary Budget Repair Levy. The Temporary Budget Repair Levy, which added 2% extra tax on high-income earners for 3 years, no longer applies since1 July 2017.
For more information on this levy, see SuperGuide articles Temporary Budget Repair Levy: More income tax for high-income earners until June 2017and Income tax cut for 2017/2018 year (and for 2016/2017 year).