The Government’s amendments to stage 3 tax cuts have passed the Senate on Tuesday evening. Now, the question arises, what will happen next? Well, the tax cuts will become law now. The announcement made in late January by Prime Minister Anthony Albanese stated that labor would be able to make changes to the stage 3 tax cuts to provide broader and better results to all taxpayers.
The Government’s amendments to stage 3 tax cuts involve reducing the lowest rate of income tax to 16 per cent from 19 per cent and the second lowest to 30 per cent from 32.5 per cent, maximising the Medicare levy threshold and the top 45 per cent tax threshold.
Treasury Laws Amendment Bill 2024 has passed the Senate without changes late on Tuesday. The Coalition agreed to pass the bill but is looking forward to going to the next election with its own tax reforms.
Treasurer Jim Chalmers has defended the revised tax cut policy, indicating that they will still offer significant cuts but will provide middle-income earners with the more significant cost of living relief.
The Treasury Laws Amendment (Cost of Living – Medicare Levy) Bill 2024 has also passed through the Senate on Tuesday. It maximises the Medicare levy and Medicare levy surcharge low-income threshold amounts for families, individuals, and individual taxpayers and families eligible for the pensioners and seniors tax offset.
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