07 Oct 2021 Personal Income Tax
JobMaker Plan – bringing forward the personal income tax plan
On 11 May 2021, as part of the Federal Budget 2021–22, the Government announced it will extend the low and middle income tax offset (LMITO) for the 2021–22 income year.
- increases the low income tax offset (LITO) from $445 to $700 and adjusts the phase out rules
- increases the top threshold of the 19% personal income tax bracket from $37,000 to $45,000
- increases the top threshold of the 32.5% personal income tax bracket from $90,000 to $120,000.
These measures result in changes to the tax rates for the 2020–21 income year for individuals who are Australian residents, foreign residents and working holiday makers.
The Tax Institute has produced our member-only Tax Rates Tables 2021–22 that reflect these changes. Download your copy here.