Treasury Laws Amendment (More Cost of Living Relief) Act 2025 (Cth)

Treasury Laws Amendment (More Cost of Living Relief) Act 2025

No. 28, 2025

An Act to amend the law relating to taxation, and for related purposes

Contents

Treasury Laws Amendment (More Cost of Living Relief) Act 2025

No. 28, 2025

An Act to amend the law relating to taxation, and for related purposes

[Assented to 27 March 2025]

The Parliament of Australia enacts:

1Short title

This Act is the Treasury Laws Amendment (More Cost of Living Relief) Act 2025.

2Commencement

1. (1)

   Each provision of this Act specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.

Commencement information
Column 1	Column 2	Column 3
Provisions	Commencement	Date/Details
1. The whole of this Act	The day after this Act receives the Royal Assent.	28 March 2025

Note: This table relates only to the provisions of this Act as originally enacted. It will not be amended to deal with any later amendments of this Act.

1. (2)

   Any information in column 3 of the table is not part of this Act. Information may be inserted in this column, or information in it may be edited, in any published version of this Act.

3Schedules

Legislation that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.

Schedule 1New tax cuts for every Australian taxpayer

Income Tax Rates Act 1986

1. 1

   Clause 1 of Part I of Schedule 7 (table heading)

   Repeal the heading, substitute:

Tax rates for resident taxpayers for the 2024‑25 or 2025‑26 year of income

2At the end of clause 1 of Part I of Schedule 7

Add:

Tax rates for resident taxpayers for the 2026‑27 year of income
Item	For the part of the ordinary taxable income of the taxpayer that:	The rate is:
1	exceeds the tax‑free threshold but does not exceed $45,000	15%
2	exceeds $45,000 but does not exceed $135,000	30%
3	exceeds $135,000 but does not exceed $190,000	37%
4	exceeds $190,000	45%

Tax rates for resident taxpayers for the 2027‑28 year of income or a later year of income
Item	For the part of the ordinary taxable income of the taxpayer that:	The rate is:
1	exceeds the tax‑free threshold but does not exceed $45,000	14%
2	exceeds $45,000 but does not exceed $135,000	30%
3	exceeds $135,000 but does not exceed $190,000	37%
4	exceeds $190,000	45%

Schedule 2Increasing the Medicare levy low‑income thresholdsA New Tax System (Medicare Levy SurchargeFringe Benefits) Act 1999

1Paragraphs 15(1)(c) and 16(2)(c)

Omit “$26,000”, substitute “$27,222”.

Medicare Levy Act 1986

1. 2

   Subsection 3(1) (paragraph (a) of the definition of phase‑in limit)

   Omit “$51,361”, substitute “$53,775”.

2. 3

   Subsection 3(1) (paragraph (c) of the definition of phase‑in limit)

   Omit “$32,500”, substitute “$34,027”.

3. 4

   Subsection 3(1) (paragraph (a) of the definition of threshold amount)

   Omit “$41,089”, substitute “$43,020”.

4. 5

   Subsection 3(1) (paragraph (c) of the definition of threshold amount)

   Omit “$26,000”, substitute “$27,222”.

5. 6

   Subsection 8(5) (definition of family income threshold)

   Omit “$43,846”, substitute “$45,907”.

6. 7

   Subsection 8(5) (definition of family income threshold)

   Omit “$4,027”, substitute “$4,216”.

8Subsections 8(6) and (7)

Omit “$43,846”, substitute “$45,907”.

9Subsection 8(7)

Omit “$57,198”, substitute “$59,886”.

10Paragraph 8D(3)(c)

Omit “$26,000”, substitute “$27,222”.

11Subparagraph 8D(4)(a)(ii)

Omit “$26,000”, substitute “$27,222”.

12Paragraph 8G(2)(c)

Omit “$26,000”, substitute “$27,222”.

13Subparagraph 8G(3)(a)(ii)

Omit “$26,000”, substitute “$27,222”.

14Application provision

The amendments made by this Schedule apply in relation to assessments for the 2024‑25 year of income and later years of income.

[Minister’s second reading speech made in—

House of Representatives on 26 March 2025

Senate on 26 March 2025]

(26/25)