Personal income tax cuts now law
The Bill containing the three-stage personal income tax cuts package completed passage through parliament and is now law.
The Treasury Laws Amendment (Tax Relief So Working Australians Keep More Of Their Money) Bill 2019 has received assent as Act No 52 of 2019 and fully implements the measure announced in the 2019 Federal Budget.
The measure amends the tax law to lower taxes for individuals, including changes to the low and middle income tax offset (LMITO) from 2018/19 and the low income tax offset from 2022/23.
The Bill also amends the personal income tax rates and thresholds from 2022/23.
“The Bill containing the three-stage personal income tax cuts package completed passage through parliament and is now law.”
ATO administration of amendments
The ATO is making system changes to ensure amendments to the LMITO will be taken into account for 2018/19 tax returns that have already been lodged such that taxpayers will receive the appropriate refunds reflecting their entitlement to the increased LMITO, according to income level and tax paid. The changes to the offset will also be taken into account for those yet to lodge their 2018/19 return.
If you have any questions regarding the above matters, please do not hesitate to contact us.
Norman Ruan
Accountant
T: 02 9984 7774
E: normanr@northadvisory.com.au
About the author
Cayle Petritsch - Director & Wealth Advisor
Cayle Petritsch, Director and Wealth Advisor, works with our existing clients who have recognised the importance of business owners making strategic financial choices not only for their company, but for their personal finances too.
Cayle saw a great opportunity to expand North Advisory’s services into SMSF/superannuation, personal wealth management, asset protection services and other crucial personal finance facets that business owners need to consider.
His approach to wealth management allows you to receive highly personalised wealth advice. Working closely with Marius, Cayle understands the unique needs of every client, from their lifestyle and business goals to their retirement plans.
Key Takeaways
The personal income tax-cut legislation is now fully law.
This solidifies earlier proposals into enforceable changes under the tax code.
Tax offsets and thresholds have been reworked to ease the burden on low- and middle-income earners.
Through adjustments like LMITO and low-income offsets, many Australians pay less tax.
The relief isn’t temporary — changes apply from 2022/23 onwards.
This gives individuals and households ongoing benefit rather than a one-off reduction.
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What does the “personal income tax cuts” law do?
It implements the three-stage tax-cut package approved under the Treasury Laws Amendment (Tax Relief So Working Australians Keep More Of Their Money) Act 2019, lowering income taxes for many individuals by adjusting tax rates and offsets.
What is the Low and Middle Income Tax Offset (LMITO) and who benefits?
The LMITO is a tax offset introduced under the tax cuts package. It helps reduce tax for low- and middle-income earners, effectively lowering their payable tax during eligible years starting 2018/19.
When do the new tax-rate thresholds and offsets apply?
The changes to personal income tax rates and offsets (including adjustments to the low income tax offset) apply from the 2022/23 income year onward.
Will taxpayers who already filed 2018/19 returns benefit?
Yes — the relevant tax-office systems were updated so that 2018/19 returns already lodged will be reassessed to reflect entitlement to the revised LMITO, resulting in appropriate refunds where applicable.
Does this law apply to all taxpayers, or only certain income brackets?
The tax-cuts package benefits a broad range of taxpayers — particularly low- and middle-income earners — because of the offset and adjusted thresholds. The benefit depends on their taxable income and eligibility under the offset rules.
What does it mean that the personal income tax cuts are now law — and who benefits?
It means the three-stage personal income tax cuts package has officially passed Parliament and became legislation, which reduces personal tax for eligible Australians over time. The changes were implemented through the Treasury Laws Amendment (Tax Relief So Working Australians Keep More Of Their Money) Bill 2019, which received Royal Assent and became Act No. 52 of 2019.
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