The majority voted in favour of a motion "that the reasons be adopted."

The reasons voted on in this division were the reasons why they disagreed with the Senate's amendments to the bill. In other words, the House was rejecting the Senate's amendments for the reasons set out below.

What were the reasons?

Reasons of the House of Representatives for disagreeing to the amendments of the Senate

Senate Amendments (1, 2 and 3)

The amendments proposed by the Senate remove step three of the Personal Income Tax Plan. Step three of the Personal Income Tax Plan simplifies and flattens the tax system by abolishing the 37 per cent tax bracket entirely, reducing the number of tax brackets from five to four.

The Plan is a package that gives certainty to Australian families that they will keep more of what they earn in the future. It comprises three steps.

Step 1, prioritises low and middle income earners by providing tax relief of up to $530 to help with cost of living pressures.

Step 2, protects what Australians earn from bracket creep, ensuring that a pay rise, extra overtime or working more hours do not get eaten up by higher tax rates.

Step 3, by simplifying and flattening the tax system, ensures that, by 2024-25, some 94 per cent of taxpayers will face a marginal tax rate no higher than 32.5 per cent based on projections.

High income earners will continue to pay their fair share with the tax system remaining progressive under the Personal Income Tax Plan. For example, a person on $200,000 would pay around 13 times more tax than a person on $41,000.

In 2015-16, the top 20 per cent of taxpayers paid around 61 per cent of all personal income tax. Under the Personal Income Tax Plan, this cohort is projected to continue to contribute a broadly similar share in 2024-25.

In 2015-16 those on the top tax bracket paid 30.3 per cent of all personal income tax collected. Under the plan those on the top tax bracket will pay around 36 per cent of all personal income tax collected in 2024-25.

The Personal Income Tax Plan delivers lower, fairer and simpler taxes to all taxpayers.

Accordingly, the House of Representatives does not accept these amendments.

What is this bill about?

The bill was introduced to:

  • introduce a low and middle income tax offset to reduce the tax payable by low and middle income earners that are Australian residents in the 2018-19, 2019-20, 2020-21 and 2021-22 financial years;
  • merge the low and middle income offset and the current low income tax offset into a new low income tax offset from the 2022-23 financial year; and
  • progressively increase the income tax rate thresholds in the 2018-19, 2022-23 and 2024-25 financial years.

Votes Passed by a small majority

Nobody rebelled against their party.

Party Votes
Adam Bandt Melbourne Australian Greens No
Australian Labor Party (94% turnout) 0 Yes 61 No
Anthony Albanese Grayndler No
Anne Aly Cowan No
Sharon Bird Cunningham No
Chris Bowen McMahon No
Gai Brodtmann Canberra No
Tony Burke Watson No
Linda Burney Barton No
Mark Butler Port Adelaide No
Terri Butler Griffith No
Anthony Byrne Holt No
Jim Chalmers Rankin No
Nick Champion Wakefield No
Lisa Chesters Bendigo No
Jason Clare Blaxland No
Sharon Claydon Newcastle No
Julie Collins Franklin No
Pat Conroy Shortland No
Michael Danby Melbourne Ports No
Milton Dick Oxley No
Mark Dreyfus Isaacs No
Justine Elliot Richmond No
Joel Fitzgibbon Hunter No
Mike Freelander Macarthur No
Steve Georganas Hindmarsh No
Andrew Giles Scullin No
Luke Gosling Solomon No
Ross Hart Bass No
Chris Hayes Fowler No
Julian Hill Bruce No
Emma Husar Lindsay No
Ed Husic Chifley No
Stephen Jones Whitlam No
Ged Kearney Batman No
Mike Kelly Eden-Monaro No
Matt Keogh Burt No
Peter Khalil Wills No
Catherine King Ballarat No
Madeleine King Brand No
Andrew Leigh Fenner No
Richard Marles Corio No
Emma McBride Dobell No
Brian Mitchell Lyons No
Rob Mitchell McEwen No
Shayne Neumann Blair No
Brendan O'Connor Gorton No
Clare O'Neil Hotham No
Cathy O'Toole Herbert No
Julie Owens Parramatta No
Graham Perrett Moreton No
Tanya Plibersek Sydney No
Michelle Rowland Greenway No
Joanne Ryan Lalor No
Bill Shorten Maribyrnong No
Anne Stanley Werriwa No
Wayne Swan Lilley No
Meryl Swanson Paterson No
Susan Templeman Macquarie No
Matt Thistlethwaite Kingsford Smith No
Maria Vamvakinou Calwell No
Tim Watts Gellibrand No
Tony Zappia Makin No
Kate Ellis Adelaide Absent
Jenny Macklin Jagajaga Absent
Amanda Rishworth Kingston Absent
Warren Snowdon Lingiari Absent
Mark Coulton Parkes Deputy Speaker Yes
Cathy McGowan Indi Independent No
Andrew Wilkie Denison Independent No
Bob Katter Kennedy Katter's Australian Party Yes
Liberal Party (100% turnout) 59 Yes 0 No
Tony Abbott Warringah Yes
John Alexander Bennelong Yes
Karen Andrews McPherson Yes
Kevin Andrews Menzies Yes
Julia Banks Chisholm Yes
Julie Bishop Curtin Yes
Russell Broadbent McMillan Yes
Scott Buchholz Wright Yes
Steven Ciobo Moncrieff Yes
David Coleman Banks Yes
Chris Crewther Dunkley Yes
Peter Dutton Dickson Yes
Warren Entsch Leichhardt Yes
Trevor Evans Brisbane Yes
Jason Falinski Mackellar Yes
Paul Fletcher Bradfield Yes
Nicolle Flint Boothby Yes
Josh Frydenberg Kooyong Yes
Ian Goodenough Moore Yes
Andrew Hastie Canning Yes
Alex Hawke Mitchell Yes
Sarah Henderson Corangamite Yes
Luke Howarth Petrie Yes
Greg Hunt Flinders Yes
Steve Irons Swan Yes
Michael Keenan Stirling Yes
Craig Kelly Hughes Yes
Andrew Laming Bowman Yes
Craig Laundy Reid Yes
Julian Leeser Berowra Yes
Sussan Ley Farrer Yes
Nola Marino Forrest Yes
John McVeigh Groom Yes
Scott Morrison Cook Yes
Ben Morton Tangney Yes
Ted O'Brien Fairfax Yes
Kelly O'Dwyer Higgins Yes
Tony Pasin Barker Yes
Christian Porter Pearce Yes
Jane Prentice Ryan Yes
Melissa Price Durack Yes
Christopher Pyne Sturt Yes
Rowan Ramsey Grey Yes
Stuart Robert Fadden Yes
Ann Sudmalis Gilmore Yes
Michael Sukkar Deakin Yes
Angus Taylor Hume Yes
Dan Tehan Wannon Yes
Alan Tudge Aston Yes
Malcolm Turnbull Wentworth Yes
Bert Van Manen Forde Yes
Ross Vasta Bonner Yes
Andrew Wallace Fisher Yes
Lucy Wicks Robertson Yes
Rick Wilson O'Connor Yes
Tim Wilson Goldstein Yes
Jason Wood La Trobe Yes
Ken Wyatt Hasluck Yes
Trent Zimmerman North Sydney Yes
National Party (93% turnout) 14 Yes 0 No
Andrew Broad Mallee Yes
Darren Chester Gippsland Yes
George Christensen Dawson Yes
Damian Drum Murray Yes
Andrew Gee Calare Yes
David Gillespie Lyne Yes
Luke Hartsuyker Cowper Yes
Kevin Hogan Page Yes
Michelle Landry Capricornia Yes
David Littleproud Maranoa Yes
Michael McCormack Riverina Yes
Llew O'Brien Wide Bay Yes
Ken O'Dowd Flynn Yes
Keith Pitt Hinkler Yes
Barnaby Joyce New England Absent
Tony Smith Casey Speaker Absent
Totals (96% turnout) 75 Yes – 64 No