Robin Hood tax changes to provide cost of living tax relief to more Australians

Following intense media speculation and despite promises even up until last week that there would be no changes to the legislated ‘Stage 3 tax cuts’, the Australian Prime Minister, Mr Anthony Albanese has now announced a proposal to change his Government’s tax policy.

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
tax table with proposed changes

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

* mandatory fields

Your personal data is collected by Mazars in Australia, the data controller, in accordance with applicable laws and regulations. Fields marked with an asterisk are required. If any required field is left blank, it will not be possible to process your request. Your personal data is collected for the purpose of processing your request.

You have a right to access, correct and erase your data, and a right to object to or limit the processing of your data. You also have a right to data portability and the right to provide guidance on what happens to your data after your death. Finally, you have the right to lodge a complaint with a supervisory authority and a right not to be the subject of a decision based exclusively on automated processing, including profiling, that produces legal effects concerning you or significantly affects you in a similar way.

Published: 25/1/2024

Author: Jamie Towers

All rights reserved. This publication in whole or in part may not be reproduced, distributed or used in any manner whatsoever without the express prior and written consent of Mazars, except for the use of brief quotations in the press, in social media or in another communication tool, as long as Mazars and the source of the publication are duly mentioned. In all cases, Mazars’ intellectual property rights are protected and the Mazars Group shall not be liable for any use of this publication by third parties, either with or without Mazars’ prior authorisation. Also please note that this publication is intended to provide a general summary and should not be relied upon as a substitute for personal advice. Content is accurate as at the date published.