The request sought the financial implications, by stage and component, of the 2019-20 Budget measure Lower taxes for hard-working Australians: Building on the Personal Income Tax Plan.

The request also sought the annual aggregate cost of the third stage of the 2019-20 Budget measure Lower taxes for hard-working Australians: Building on the Personal Income Tax Plan (reducing the 32.5 per cent marginal tax rate to 30 per cent from 1 July 2024) for individuals with taxable incomes greater than $180,000 in each year.

The request sought the financial implications of the 2018-19 Budget measure Personal Income Tax Plan and the 2019-20 Budget measure Lower taxes for hard-working Australians: Building on the Personal Income Tax Plan, by component and start date.

The components of the 2018-19 Budget measure are as follows:

This request involves four options.

The request sought the estimated cost to the budget, from 2017-18 to 2030-31, of the Government’s Personal income tax plan. The baseline for this analysis is keeping the personal income tax rates, thresholds and offsets the same as they were in 2017-18 over the period to 2030-31.

This proposal would introduce a new 40 per cent mining super profits tax on the super profits of individual Australian mining projects, where the super profits would be calculated at the project level as revenue less expenses.

This request sought the amount of revenue that may have been raised from 2012-13 to 2019-20 if the original Resource Super Profits Tax (RSPT) was introduced by the Rudd Government from 1 July 2012.

The request specified that the design features of the RSPT should reflect the Rudd Government’s announcement paper The Resource Super Profits Tax: a fair return to the nation released in May 2010 and the Parliamentary Library Brief’s description of the tax¹. The key steps in calculating the RSPT are provided at Attachment B.

The proposal would introduce an annual tax levied on the net wealth of Australian residents,
regardless of where their assets are held, and the net wealth of non-residents who hold Australian
assets from 1 July 2022.

• Australian adult residents’ net wealth would be equal to the value of all assets minus al liabilities.
• Non-residents’ net wealth would be equal to the value of their Australian assets minus

Australian liabilities.

The following features of the tax would apply to both residents and non-residents.

This proposal would eliminate the following withholding tax on interest paid by financial institutions operating in Australia to foreign residents.

• The standard interest withholding tax levied at the rate of 10 per cent
• The reduced interest withholding tax charged on Australian branches borrowing from their foreign parents as outlined in the Australia as a Finance & Technology Centre Advisory Group (AFTCAG) Report.

The proposal would have effect from 1 July 2022.

This request sought estimated financial implications and distributional analysis of Stage 3 of the personal income tax plan as set out in the 2018-19 Budget measure Personal income tax plan and the 2019-20 Budget measure Lower taxes for hard-working Australians: Building on the Personal Income Tax Plan over the period to 2031-32.

The stage 3 tax cuts involve:

This proposal would introduce a new super-profits tax at a rate of 40 per cent that would apply to company profits that exceed an allowance for a corporate equity threshold with effect from 1 July 2022.

Only post company tax Australian sourced profits would be subject to the super-profits tax and the allowance for corporate equity threshold would equal shareholder equity multiplied by 5 per cent plus the long-term bond rate.