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
1 Short title
2 Commencement
3 Schedules
Schedule 1—New tax cuts for every Australian taxpayer
Income Tax Rates Act 1986
Schedule 2—Increasing the Medicare levy low‑income thresholds
A New Tax System (Medicare Levy Surcharge—Fringe Benefits) Act 1999
Medicare Levy Act 1986
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:
1 Short title
This Act is the Treasury Laws Amendment (More Cost of Living Relief) Act 2025.
2 Commencement
(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Note: This table relates only to the provisions of this Act as originally enacted.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.
(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.
3 Schedules
Legislation that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.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 1—New tax cuts for every Australian taxpayer
Income Tax Rates Act 1986
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 |
2 At 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 2—Increasing the Medicare levy low‑income thresholds
A New Tax System (Medicare Levy Surcharge—Fringe Benefits) Act 1999
1 Paragraphs 15(1)(c) and 16(2)(c)
Omit “$26,000”, substitute “$27,222”.
Medicare Levy Act 1986
2 Subsection 3(1) (paragraph (a) of the definition of phase‑in limit)
Omit “$51,361”, substitute “$53,775”.
3 Subsection 3(1) (paragraph (c) of the definition of phase‑in limit)
Omit “$32,500”, substitute “$34,027”.
4 Subsection 3(1) (paragraph (a) of the definition of threshold amount)
Omit “$41,089”, substitute “$43,020”.
5 Subsection 3(1) (paragraph (c) of the definition of threshold amount)
Omit “$26,000”, substitute “$27,222”.
6 Subsection 8(5) (definition of family income threshold)
Omit “$43,846”, substitute “$45,907”.
7 Subsection 8(5) (definition of family income threshold)
Omit “$4,027”, substitute “$4,216”.
8 Subsections 8(6) and (7)
Omit “$43,846”, substitute “$45,907”.
9 Subsection 8(7)
Omit “$57,198”, substitute “$59,886”.
10 Paragraph 8D(3)(c)
Omit “$26,000”, substitute “$27,222”.
11 Subparagraph 8D(4)(a)(ii)
Omit “$26,000”, substitute “$27,222”.
12 Paragraph 8G(2)(c)
Omit “$26,000”, substitute “$27,222”.
13 Subparagraph 8G(3)(a)(ii)
Omit “$26,000”, substitute “$27,222”.
14 Application 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)