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ARTICLE · 21 MAY 2012

Australia's Budget 2012-13: Personal income tax changes

Greenwoods & Freehills
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The money raised by the carbon tax is earmarked for a variety of uses including changes to the personal income tax.

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Tony Frost
Tony Frost

New rates from 2012

The money to be raised by the carbon tax was earmarked by the Government for a variety of uses including changes to the personal income tax which will come into effect from 1 July 2012:

  • the tax free threshold for individuals will be increased from $6,000 to $18,200;
  • the low income tax offset will be reduced;
  • the thresholds for the Medicare levy will be increased; and
  • the two bottom tax brackets [currently 15% and 30%] will be increased to 19% and 32.5%. The thresholds for these rates and the remaining rates are unaffected.

Withdrawn measures

However, the Government announced in the Budget a decision to withdraw some concessions previously announced.

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