Under our plan, income taxes will be lower, fairer and simpler, to support our economic recovery and ensure Australians keep more of what they earn.

TAX RELIEF FOR WORKERS

In 2019, the Morrison Government legislated tax relief so people could keep more of what they earn.

Putting more money into the pockets of hardworking Australians strengthened our economy to respond to this economic crisis.

Now the Government has brought forward Stage Two of our legislated tax cuts by two years.

This means more than 11 million taxpayers are getting a tax cut backdated to 1 July 2020.

We will also retain the Low and Middle Income Tax Offset for an additional year.

These changes will see more than 7 million Australians receive tax relief of $2,000 or more this year.

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.

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

Tax relief has been delivered for businesses with an annual turnover up to $50 million.

The tax rate for businesses with a turnover less than $50 million has already been reduced from 30% to 26%. We are further reducing this to 25% in 2021-22.

For unincorporated businesses with a turnover less than $5 million, we have introduced a tax discount of 13% (capped at $1,000), and have legislated a further increase to 16%.

To unlock investment, the Morrison Government is expanding the successful Instant Asset Write Off.

Over 99% of businesses will be 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 2022.

For example, this will mean a trucking company can upgrade their fleet, a farmer can buy a new harvester and a manufacturer can expand their production line.

Small businesses will buy, sell, deliver and install these assets.

Every sector of our economy will benefit, creating jobs around the country.

MAKING MULTINATIONALS PAY THEIR FAIR SHARE

Australia now has some of the strongest multinational tax laws in the world. This includes the Multinational Anti-Avoidance Law and the Diverted Profits Tax.

Since July 2016, the ATO has raised more than $20 billion in additional tax from large companies, multinationals and wealthy individuals through these rules.

STOPPING LABOR’S TAXES

Labor can’t manage money, which means they come after yours.

At the last election, Labor wanted higher taxes – on retirees, housing, income, investments, family businesses, electricity and cars.

Their tax grabs would hurt our economy, put jobs at risk and cost everyday Australians.

Labor can’t be trusted with your money.

Information current as at December 2020