Bill
Treasury Laws Amendment (Tax Relief So Working Australians Keep More Of Their Money) Bill 2019
passed, as at 2019-07-05. Treasury portfolio.
- Sponsor
- Not recorded
- Portfolio
- Treasury
Recorded stages
- introduced — 2019-07-02
- second reading — 2019-07-02
- second reading — 2019-07-02
- second reading — 2019-07-02
- committee — 2019-07-02
- third reading — 2019-07-02
- third reading — 2019-07-02
- third reading — 2019-07-02
- introduced — 2019-07-04
- second reading — 2019-07-04
- second reading — 2019-07-04
- second reading — 2019-07-04
- committee — 2019-07-04
- third reading — 2019-07-04
- passed — 2019-07-04
- royal assent — 2019-07-05
Divisions
- The majority voted in favour of a [motion](https://www.openaustralia.org.au/senate/?id=2019-07-04.3.2) introduced by WA Senator [Mathias Cormann](https://theyvoteforyou.org.au/people/senate/wa/mathias_cormann) (Liberal), which means it passed. ### Motion text > *That on Thursday, 4 July 2019—* > > *(a) following the reporting of a message from the House of Representatives transmitting the Treasury Laws Amendment (Tax Relief So Working Australians Keep More Of Their Money) Bill 2019 for concurrence, the bill be considered immediately and have precedence over all other government business until determined;* > > *(b) if by 2 pm consideration of the bill has not concluded, then the routine of business after 3.30 pm be government business only;* > > *(c) divisions may take place after 4.30 pm; and* > > *(d) the Senate shall adjourn without debate after it has completed consideration of the bill, including any message from the House of Representatives, or a motion for the adjournment is moved by a minister, whichever is the earlier.* — 2019-07-04, Senate: affirmative, ayes 62, noes 9
- The majority voted against an [amendment](https://www.openaustralia.org.au/senate/?gid=2019-07-04.9.1) introduced by ACT Senator [Katy Gallagher](https://theyvoteforyou.org.au/people/senate/act/katy_gallagher) (Labor), which means it failed. ### Motion text > *At the end of the motion, add:* > > *", but the Senate is of the opinion that:* > > *(a) measures that begin in the 2024-25 financial year should be removed from the bill because it is not responsible to sign up to $95 billion of tax cuts that do not come into effect for five years; and* > > *(b) the Opposition's plan would support the economy now, providing income tax relief to every Australian worker from the 2019-20 financial year and bringing forward infrastructure investment".* — 2019-07-04, Senate: negative, ayes 26, noes 44
- Treasury Laws Amendment (Tax Relief So Working Australians Keep More of Their Money) Bill 2019 - Second Reading - Government should increase Newstart & Youth Allowance — 2019-07-04, Senate: negative, ayes 11, noes 57
- Treasury Laws Amendment (Tax Relief So Working Australians Keep More of Their Money) Bill 2019 - Second Reading - Agree with the bill's main idea — 2019-07-04, Senate: affirmative, ayes 60, noes 9
- The majority voted against a [motion](https://www.openaustralia.org.au/senate/?gid=2019-07-04.214.1) introduced by Tasmanian Senator [Peter Whish-Wilson](https://theyvoteforyou.org.au/people/senate/tasmania/peter_whish-wilson) (Greens), which means it failed. Senator Whish-Wilson [explained his amendment](https://www.openaustralia.org.au/senate/?gid=2019-07-04.214.1): > *The Greens amendment strips the tax cuts from this bill. It increases the size of the low-income tax offset, the LITO, from the current $445 level, beyond the $700 level proposed by the government, to $1,080. The amendment also brings about this increase to the LITO immediately, rather than in 2022, as proposed by the government. The net result is that people earning anything up to $37,000 per annum would immediately and permanently be $115 better off under the Greens amendment. People earning a wage of anything up to $67,000, which is very close to the current cap for the LITO, would also receive an immediate and permanent increased tax offset under our amendment. The benefit of the Greens proposal, as opposed to this government's tax cuts, is that it puts more money into the pockets of those wage earners who would most benefit and who most need it. It wouldn't be providing nearly half the value of the entire package to the wealthiest Australians.* ### Motion text > *(1) Schedule 1, page 3 (line 1) to page 4 (line 5), omit the Schedule, substitute:* > > *Schedule 1—Low Income tax offset* > > *Income Tax Assessment Act 1936* > > *1 Subsection 159N(2)* > > *Omit "$445, reduced by 1 cents", substitute "$1080, reduced by 3 cents".* > > *Income Tax Assessment Act 1997* > > *2 Subsection 61 -115(1) (table)* > > *Repeal the table, substitute:* > > *3 Application* > > *The amendment of section 159N of the Income Tax Assessment Act 1936 as made by this Schedule applies in relation to assessments for the 2018-19, 2019-20, 2020-21 or 2021-22 income year.* > > *[low income tax offset]* — 2019-07-04, Senate: negative, ayes 9, noes 57
- The majority voted against an [amendment](https://parlinfo.aph.gov.au/parlInfo/search/display/display.w3p;query=Id:legislation/billhome/display.w3p;query=Id%3A%22legislation%2Famend%2Fr6345_amend_28286e4b-0b40-4d8c-8b3c-a5999ca10115%22;rec=0) introduced by ACT Senator [Katy Gallagher](https://theyvoteforyou.org.au/people/senate/act/katy_gallagher) (Labor), which means it failed. Senator Gallagher [explained that](https://www.openaustralia.org.au/senate/?gid=2019-07-04.217.1): > *This amendment seek to bring forward one element of stage 2 of the government's tax package. I have spoken in my second reading speech about this. Briefly, it recognises that the economy needs a boost now, so it supports stage 1 of the tax cuts. It ensures that there is a tax cut for every worker in this parliamentary term. It is responsible in the sense that, yes, it will cost more in the short term. We are aware that the government is forecasting a surplus of just over $7 billion. Bringing forward the lifting of the tax bracket from $90,000 to $120,000 in this financial year would have a budget impact in the order of $3.6 billion, but it would certainly—based on the current projections of the government and the Treasury—ensure that there was a surplus maintained. It is being responsible. It ensures that there is a tax cut for every worker in this parliamentary term.* — 2019-07-04, Senate: negative, ayes 22, noes 43
- The majority voted in favour of a [motion](https://www.openaustralia.org.au/senate/?gid=2019-07-04.221.1) to keep items 2 and 4 of schedule 2 unchanged. In other words, they voted for those items to "stand as printed". This motion was put to the Senate after ACT Senator [Katy Gallagher](https://theyvoteforyou.org.au/people/senate/act/katy_gallagher) (Labor) moved for those items to be opposed. She explained that: > *This amendment essentially carves out stage 3 from the government's tax package. I spoke at length in the second reading debate about this. Frankly, we think it is irresponsible to ask the parliament to sign up now, five years ahead of the date of effect, without having any idea what state the budget or the economy will be in at that time. The amount of money that the government is seeking to allocate to this element of the tax package is $95 billion over the medium term. We have five years until they come into effect. As we have consistently said in both houses, we think it is irresponsible to sign up to that element of the tax package.* — 2019-07-04, Senate: affirmative, ayes 34, noes 32
- Treasury Laws Amendment (Tax Relief So Working Australians Keep More of Their Money) Bill 2019 - Third Reading - Pass the bill — 2019-07-04, Senate: affirmative, ayes 56, noes 9
Plain-language summary
Written by a model from the explanatory memorandum; not the record, as at 2019-07-02.
The bill would cut personal income tax for Australian resident taxpayers over several years.
It would raise the low and middle income tax offset amounts and adjust tax brackets and rates for future years.
The low and middle income tax offset would end after the 2021-22 income year, with a new offset structure starting from 2022-23.
- Raises the low and middle income tax offset base amount to $255 and maximum to $1,080 for 2018-19 through 2021-22.
- Increases the taxable income threshold for the 19 per cent tax rate from $41,000 to $45,000 from 2022-23.
- Reduces the second personal income tax rate from 32.5 per cent to 30 per cent from 2024-25.
- Applies equivalent tax changes to entities taxed like individuals, foreign residents and working holiday-makers.
Australian resident individual taxpayers, entities taxed like individuals, foreign residents and working holiday-makers.
Sources
em
billhome
frl act