The Government introduced the Labor 2013-14 Budget Savings (Measures No 1) Bill 2014 in the House of Reps on Wed 16.7.2014.
The Bill proposes to amend the Clean Energy (Income Tax Rates Amendments) Act 2011 to repeal the personal income tax cuts that were legislated to commence on 1 July 2015 eg the increase in the tax-free threshold to id=”mce_marker”9,400 and increase to the second personal marginal tax rate from 32.5% to 33%.
It would also amend the Clean Energy (Tax Laws Amendments) Act 2011 to repeal associated amendments to the low-income tax offset (LITO) that were legislated to commence on 1 July 2015.
If the Bill is passed, then from 1 July 2015:
- the tax free threshold would remain at id=”mce_marker”8,200;
- the second personal marginal tax rate would remain at 32.5%;
- the maximum value of the LITO would remain at $445;
- the withdrawal rate of the LITO would remain at 1.5%; and
- the threshold below which a person may receive LITO would remain at a taxable income of $66,667.
It is understood the Bill was previously the Clean Energy (Income Tax Rates and Other Amendments) Bill 2013 [No 2] that had been defeated in the Senate.
[LTN 135, 16/7/14]