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.