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Australian Government - Future Tax

Personal Tax

  • $47 billion worth of personal income tax cuts (2008-09 Budget, 2009-10 Budget and 2010-11 Budget): The Government has improved participation incentives, by delivering personal income tax cuts worth a total of $47 billion in its first three Budgets.
  • Reform of the tax-free threshold and the Low Income Tax Offset (Clean Energy Future package): The Government will free over one million low-income earners from needing to lodge a tax return, improve incentives to participate in the workforce, and increase transparency and fairness, by increasing the tax-free threshold from $6,000 to $18,200 from 1 July 2012 and then increasing it further to $19,400 from 1 July 2015. [Consistent with recommendation 2 of the tax review.]
  • Phasing out of the Dependent Spouse Tax Offset (2011-12 Budget): The Government will reduce participation disincentives for spouses without children, by abolishing the Dependent Spouse Tax Offset for those aged under 40 years at 1 July 2011. [Consistent with recommendation 6(a) of the tax review.]
  • Reform of the fringe benefits tax treatment of cars (2011-12 Budget): The Government has removed the unintended incentive for people to drive salary-sacrificed and employer-provided vehicles further than they need to in order to obtain a larger tax concession, by reforming the 'statutory formula' method for valuing car fringe benefits. [Consistent with recommendation 9(b) of the tax review.]
  • Increase in the superannuation guarantee to 12 per cent (May 2010): The Government will boost retirement savings, by progressively increasing the rate of the superannuation guarantee from 9 to 12 per cent.
  • Introduction of the $500 low-income earners government contribution (May 2010): The Government will extend superannuation concessions to 3.5 million low-income earners, by introducing a low-income earners government contribution of up to $500. [Consistent with recommendation 18(a) of the tax review.]
  • Increase in the superannuation guarantee age limit (May 2010): The Government will increase incentives for mature workers to remain in the workforce, by increasing the age limit for the superannuation guarantee from 70 to 75 years. [Consistent with recommendation 20 of the tax review.]
  • Continuation of the $50,000 concessional contribution cap (May 2010): The Government will help older Australians to make catch-up contributions to super, by maintaining a higher concessional contribution cap for people aged 50 or over with superannuation balances of less than $500,000. [Consistent with recommendation 18(a) of the tax review.]
  • Better reporting of superannuation payments to employees (July 2010): The Government will help ensure workers receive their superannuation, by requiring better reporting of superannuation payments to employees. [Consistent with recommendation 23(b) of the tax review.]
  • Expansion of the use of tax file numbers (August 2010): The Government will help individuals locate lost super accounts and consolidate and switch accounts, by expanding the use of tax file numbers. [Consistent with recommendation 23(c) of the tax review.]