The majority voted in favour of a motion to agree with the main idea of the bill. In parliamentary jargon, they voted to read the bill for a second time. This means that the Senate can now discuss the bill in more detail.
What is the bill's main idea?
The bill was introduced to introduce further reductions in personal income tax rates, which were announced in the 2019–20 Budget. Specifically, it:
- increases the base and maximum amounts of the low and middle income tax offset to $255 and $1080, respectively, for the 2018-19, 2019-20, 2020-21 and 2021-22 financial years;
- increases the maximum amount of the low income tax offset from $645 to $700 from the 2022-23 financial year; and
- reduces the tax payable by individuals from the 2022-23 financial year by increasing the top threshold of the 19 per cent income tax bracket from $41 000 to $45 000, and from the 2024-25 financial year by reducing the 32.5 per cent income tax rate to 30 per cent.
Read more in the bills digest.