House of Representatives

Explanatory Memorandum

(Circulated by authority of the Treasurer, the Hon Scott Morrison MP)

Chapter 2 Statement of Compatibility with Human Rights

Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011

Treasury Laws Amendment (Personal Income Tax Plan) Bill 2018

2.1 This Bill is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.

Overview

2.2 Schedule 1 to this Bill amends the tax law to:

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introduce the low and middle income tax offset to reduce the tax payable by low and middle income earners in the 2018-19, 2019-20, 2020-21 and 2021-22 income years; and

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for 2022-23 and later income years, merge the low and middle income tax offset and the LITO into a more generous new low income tax offset.

2.3 Schedule 2 to this Bill amends the Income Tax Rates Act 1986 to progressively increase the income tax rate thresholds in 2018-19, 2022-23 and 2024-25.

2.4 Together these amendments reduce the income tax burden faced by all taxpaying individuals.

Human rights implications

2.5 This Bill does not engage any of the applicable rights or freedoms.

Conclusion

2.6 This Bill is compatible with human rights as it does not raise any human rights issues.