Income Tax Point-in-Time Service Updates

Tuesday 8 April 2025 @ 4.00 p.m.

The Income Tax Point-in-Time Service has been updated to include the Treasury Laws Amendment (More Cost of Living Relief) Act 2025 (Cth) (Act No 28 of 2025) and the Treasury Laws Amendment (Tax Incentives and Integrity) Act 2025 (Cth) (Act No 29 of 2025).

Act 28 of 2025

This Act aims to deliver further cost-of-living relief to Australians. Schedule 1 to the Act makes new tax cuts for every Australian taxpayer from 1 July 2026, in order to provide more cost-of-living relief, return bracket creep and boost labour supply. The tax cuts seek to reduce the 16 per cent personal income tax rate that applies to Australian resident taxpayers to 15 per cent for the 2026-27 income year and to 14 per cent for the 2027-28 income year and later income years.

Schedule 2 to the Act contains amendments to the A New Tax System (Medicare Levy Surcharge — Fringe Benefits) Act 1999 (Cth) and the Medicare Levy Act 1986 (Cth) to increase:

  • the Medicare levy low-income thresholds for individuals and families (along with the dependent child/student component of the family threshold) in line with movements in the consumer price index (CPI);
  • the Medicare levy low-income thresholds for individuals and families eligible for the Senior Australian and Pensioner Tax Offset (SAPTO) (along with the dependent child/student component of the family threshold), in line with movements in the CPI; and
  • the surcharge low-income threshold in line with movements in the CPI.

Act 29 of 2025

This Act amends the law relating to taxation, and for related purposes. The Act includes amendments to the A New Tax System (Luxury Car Tax) Act 1999 (Cth) to tighten the definition of a fuel-efficient vehicle, and to align the indexation rates for luxury car tax (LCT) thresholds.

These amendments have been updated in the Point-in-Time Income Tax Service current to 8 April 2025 (NB: subscription required).

If you are not already a subscriber to this or other Point-in-Time Services then please contact us to find out more or to take a free trial.