Summary of proposal
Party
Australian Greens
Portfolio
Treasury
Policy Topic
Taxes
The proposal has 5 components that would modify the Australian personal income tax system.
- Component 1 would reverse the Government’s revised Stage 3 tax cuts to the rates and thresholds used in the 2023-24 financial year.
- Component 2 would convert the revised stage 3 tax cuts into a low- and middle-income tax offset (LMITO) as per the following arrangements:
| Taxable income | Offset |
|---|---|
| $18,200 – $45,000 | 3 cents for every dollar of income above $18,200 |
| $45,001 – $120,000 | $804 plus 2.5 cents for every dollar above $45,000, up to a maximum of $2,679 |
| $120,001 – $135,000 | $2,679 plus 7 cents for every dollar above $120,000, up to a maximum of $3,729 |
| $135,001 – $180,000 | $3,729 |
| $180,001 – $204,860 | $3,729 minus 15 cents for every dollar above $180,000 |
The proposed LMITO would commence from 2024-25 and be payable on assessment.
- Component 3 would introduce a new tax bracket for individuals earning more than $1 million. This new bracket would charge 60c for every dollar over $1 million.
- Component 4 would introduce a ‘Buffett rule’ which would limit tax deductions to $5,000 for individuals earning $360,000 or more.
- Component 5 would implement a minimum tax rate of 30% on non-primary production discretionary trust distributions to mature beneficiaries.
- The minimum tax rate would be applied to the total trust distribution, rather than on a marginal basis. Non-trust income would continue to be taxed at marginal rates, with an individual’s tax liability on this income assessed exclusive of discretionary trust income.
- The minimum tax rate would not apply to distributions from discretionary charitable trusts, deceased estate trusts, or testamentary trusts.
The proposal would start on 1 July 2025.