4th Jul 2019, 6:01 PM – Senate Treasury Laws Amendment (Tax Relief So Working Australians Keep More of Their Money) Bill 2019 - in Committee - Low income earners

The majority voted against a motion introduced by Tasmanian Senator Peter Whish-Wilson (Greens), which means it failed.

Senator Whish-Wilson explained his amendment:

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]