Personal income tax thresholds

Tax thresholds will rise so Australian taxpayers will take home a higher proportion of their earnings.

Reducing personal income tax

Australian taxpayers will share in personal income tax cuts worth $10.7 billion over the next four years.

Further tax relief for Australian taxpayers

On 1 July 2000, this Government introduced the largest personal tax cuts ever in Australia's history. This Budget includes another round of tax cuts for personal income taxpayers.

From 1 July 2003, there will be increases in personal income tax thresholds and additional assistance for low income earners through a more generous low income tax offset.

These changes mean that Australian taxpayers can keep a higher proportion of the earnings they receive after tax, providing improved incentives to pursue work, advancement and higher skills.

Increased personal income tax thresholds

The new thresholds are shown above. Taxpayers on an income of $35,000 per year will have a reduction in the tax they pay of $208 per year as a result of the increase in the thresholds. For those on $55,000, the reduction in tax paid will be $448 per year and for those on an income of $75,000, the reduction in tax paid will be $573 per year.

The increases in the thresholds will be reflected in the amount of tax that is withheld from taxpayers' income.