Robin Hood tax changes to provide cost of living tax relief to more Australians
The change in policy is motivated by changing economic circumstances and follows Treasury advice that the legislated cuts no longer make sense in a high-inflation environment.
The Government is proposing changing the already legislated tax cuts which were to commence on 1 July 2024, so that all taxpayers benefit.
The ‘Robin Hood’ proposals take from the rich and give to more Australians.
Rather than high income earners on more than $200,000 receiving $9,075 of tax benefit, this will be reduced to a maximum benefit of $4,529 for those taxpayers. The Government advises most taxpayers should now receive relief of $804.
The Prime Minister advised these new tax cuts are not expected to add inflationary pressures.
The proposed changes include:
- Lowering the first tax rate on incomes between $18,200 and $45,000 from 19% to 16%
- Changing the $45,001 - $200,000 30% tax band to stop at $135,000
- Reintroducing (continuing) the 37% band from $135,001 to $190,000
- 45% tax rate above $190,000 (legislated $200,000)
- Increase in the Medicare Levy threshold to $26,000
The Prime Minister’s media release elaborating on the proposed tax cuts is here. Tax cuts to help Australians with the cost of living | Prime Minister of Australia (pm.gov.au)
The new policy is expected to be introduced to Parliament in the coming weeks and to apply from 1 July 2024.
For further information please contact your usual Mazars advisor or alternatively one of our tax experts via the form below or on:
Brisbane – Jamie Towers | Melbourne – Evan Beissel | Sydney – Gaibrielle Cleary |
+61 7 3218 3900 | +61 3 9252 0800 | +61 2 9922 1166 |
Published: 25/1/2024
Author: Jamie Towers
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