The Morrison Government is delivering lower, fairer and simpler taxes, to support our economic recovery and ensure Australians keep more of what they earn.
TAX RELIEF FOR WORKERS
The Morrison Government has legislated tax relief so people can keep more of what they earn.
Putting more money into the pockets of hard-working Australians has strengthened our economy to respond to the economic crisis caused by this pandemic.
In the 2020-21 Budget, the Government brought forward Stage Two of our legislated tax cuts by two years.
This means more than 11 million taxpayers received a tax cut backdated to 1 July 2020.
In the 2021-22 Budget, the Government extended the Low and Middle Income Tax Offset for an additional year.
These changes meant more than 7 million Australians received tax relief of $2,000 or more, compared to 2017-18.
This tax relief is part of a major reform to our tax system that will see around 95% of taxpayers face a marginal rate of no more than 30 cents in the dollar in 2024-25.
In response to the growing cost of living pressures, the Morrison Government announced further tax relief in the 2022-23 Budget with a new one-off $420 cost of living tax offset.
More than 10 million low-and-middle income earners will benefit from this, with eligible individuals now receiving up to $1,500 and couples up to $3,000 in further tax relief from 1 July this year.
The top 5% of taxpayers will continue to pay around one-third of all personal income tax.
Our tax relief plan rewards hard work and creates jobs.
It means Australians will have more of their own money to spend on what matters to them, generating billions of dollars of economic activity and tens of thousands of new jobs.
It will help local businesses to keep their doors open and hire more staff.
TAX RELIEF FOR SMALL BUSINESSES
In 2021-22, the company tax rate for businesses (with a turnover less than $50 million) was reduced to 25% – the lowest rate in 50 years.
For unincorporated businesses (turnover less than $5 million), the tax offset has increased to 16% (capped at $1,000).
The Morrison Government’s small business tax relief is supporting 3.6 million small businesses employing nearly 8 million Australians.
To unlock investment, the Morrison Government has expanded the successful Instant Asset Write Off.
Over 99% of businesses are able to write off the full value of any eligible asset they purchase for their business.
This will be available for small, medium and larger businesses with a turnover of up to $5 billion until June 2023.
For example, this means a trucking company can upgrade their fleet, a farmer can buy a new harvester and a manufacturer can expand their production line.
Small businesses benefit from buying, selling, delivering and installing these assets.
Every sector of our economy can benefit, creating jobs around the country.
The 2022 Budget provides new tax relief for small businesses to upskill employees and embrace the digital revolution.
Businesses with a turnover of less than $50 million can now access:
- 20% bonus tax deduction on the costs of external training for employees.
- 20% bonus tax deduction on investing in new technology (up to $100,000 per year) – like cloud computing, eInvoicing, cyber security and web design.
MAKING MULTINATIONALS PAY THEIR FAIR SHARE
Australia is a global leader in the international fight against corporate tax avoidance. More than a dozen measures have been put in place to make multinationals pay their fair share. This includes the Multinational Anti-Avoidance Law and the Diverted Profits Tax.
Since July 2016, the ATO has raised $24.8 billion in additional tax from large companies, multinationals and wealthy individuals through these rules.
STOPPING LABOR’S TAXES
At the last election, Labor wanted higher taxes – on retirees, housing, income, investments, family businesses, electricity and cars.
By stopping these Labor taxes at the last election, Australia was saved from a devastating hit to our economy at a critical time.
When it comes to tax, Australians simply can’t believe Labor’s flip-flops.
Labor can’t manage money, which means they come after yours.
Information current as at April 2022