Temporary Budget Repair Levy

The Temporary Budget Repair Levy ensures that high income Australians are contributing to repairing Australia's finances. This measure will raise $3.1 billion over the forward estimates.

From 1 July 2014 until 30 June 2017, the Temporary Budget Repair Levy will be payable by individuals whose taxable income exceeds $180,000 at a rate of two per cent.

Around 400,000 taxpayers with taxable income above $180,000 in 2014‑15 will directly incur the Temporary Budget Repair Levy. This means that:

• individuals with taxable income of $180,000 or below will not pay the levy;
• individuals with taxable income of $200,000 will pay two per cent of $20,000, or $400 of levy; and
• individuals with taxable income of $300,000 will pay two per cent of $120,000, or $2,400 of levy.

The Temporary Budget Repair Levy will also be reflected in a number of other tax rates that are currently based on calculations that include the top personal income tax rate, including fringe benefits tax.

Reducing the tax burden

The Government is committed to simplifying the tax system and lowering the tax burden on individuals and business. Since taking office, the Government has cleared the backlog of announced but unlegislated tax measures and remains determined to repeal the minerals resource rent tax and the carbon tax.

Revenue decisions taken by this Government have reduced revenue by $5.7 billion in accrual terms compared with decisions taken by the former Government.

*Cumlative value of revenue measures taken in each budget year