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Attachment A – Personal Income Tax Plan – financial implications

Table A1: Personal Income Tax Plan – Fiscal and underlying cash balances ($m)(a)(b)
2018– 2019– 2020– 2021– 2022– 2023– 2024– 2025– 2026– 2027– 2028– Total to Total to
19 20 21 22 23 24 25 26 27 28 29 2021–22 2028–29

Revenue

Components commencing from 1 July 2018

Increase the upper threshold

for the 32.5 per cent marginal
-360 -420 -470 -500 -550 -600 -650 -650 -700 -750 -800 -1,750 -6,450
tax rate from $87,000 to
$90,000

Low and Middle Income Tax

Offset of up to $530 for
individuals with taxable
- -3,700 -3,950 -4,000 -4,050 -200 - - - - - -11,650 -15,900
income up to $125,333 for the
2018-19, 2019-20, 2020-21
and 2021-22 financial years

Total revenue – Components

commencing from -360 -4,120 -4,420 -4,500 -4,600 -800 -650 -650 -700 -750 -800 -13,400 -22,350
1 July 2018(c)

Components commencing from 1 July 2022

Increase the upper threshold

for the 32.5 per cent marginal
- - - - -3,750 -4,400 -4,800 -5,150 -5,600 -6,150 -6,650 - -36,500
tax rate from $90,000 to
$120,000

Increase the upper threshold

for the 19 per cent marginal
- - - - -4,950 -5,500 -5,700 -5,900 -6,050 -6,250 -6,400 - -40,750
tax rate from $37,000 to
$41,000

Increase the Low Income Tax

Offset to up to $645 for - - - - -100 -450 -450 -450 -450 -450 -400 - -2,750
taxable incomes up to $66,667

Total revenue – Components

- - - - -8,800 -10,350 -10,950 -11,500 -12,100 -12,850 -13,450 - -80,000
commencing from 1 July 2022

Components commencing from 1 July 2024

Increase the lower threshold

for the 45 per cent marginal
- - - - - - -1,350 -1,600 -1,800 -2,050 -2,250 - -9,050
tax rate from $180,001 to
$200,001

Remove the 37 per cent

marginal tax rate, so that all
income from $41,001 to - - - - - - -4,900 -5,800 -6,500 -7,250 -8,100 - -32,550
$200,000 is taxed at a
marginal rate of 32.5 per cent

Total revenue – Components

- - - - - - -6,250 -7,400 -8,300 -9,300 -10,350 - -41,600
commencing from 1 July 2024

Total revenue -360 -4,120 -4,420 -4,500 -13,400 -11,150 -17,850 -19,550 -21,100 -22,900 -24,600 -13,400 -143,950

(a) A positive number for the fiscal balance indicates an increase in revenue or a decrease in expenses or net capital investment in accrual terms. A
negative number for the fiscal balance indicates a decrease in revenue or an increase in expenses or net capital investment in accrual terms. A
positive number for the underlying cash balance indicates an increase in receipts or a decrease in payments or net capital investment in cash terms. A
negative number for the underlying cash balance indicates a decrease in receipts or an increase in payments or net capital investment in cash terms.
(b) Figures may not sum to totals due to rounding.
(c) Estimates over the 2018-19 Budget forward estimates period are set equal to those detailed in the 2018-19 Budget and information subsequently
released at Senate Estimates on 29 May 2018. PBO estimates from 2022-23 to 2028-29.
- Indicates nil.

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