David James Connolly
Liberal Party Tax Plan
The Morrison Government is delivering lower, fairer and simpler taxes, to support our economic recovery and ensure Australians keep more of what they earn.
TAX RELIEF FOR WORKERS
In 2019, the Morrison Government legislated tax relief so people could keep more of what they earn.
Putting more money into the pockets of hardworking Australians strengthened our economy to respond to this economic crisis.
In the 2020 Budget, the Government brought forward Stage Two of our legislated tax cuts by two years.
This means more than 11 million taxpayers received a tax cut backdated to 1 July 2020.
In the 2021 Budget, the Government extended the Low and Middle Income Tax Offset for an additional year.
This will deliver additional tax relief of up to $1,080 for individuals or $2,160 for couples.
These changes mean more than 7 million Australians receive tax relief of $2,000 or more this year, compared to 2017-18.
This tax relief is part of a major reform to our tax system that will see around 95% of taxpayers face a marginal rate of no more than 30 cents in the dollar in 2024-25.
The top 5% of taxpayers will continue to pay around one-third of all personal income tax.
Our tax relief plan rewards hard work and creates jobs.
It means Australians will have more of their own money to spend on what matters to them, generating billions of dollars of economic activity and tens of thousands of new jobs.
It will help local businesses to keep their doors open and hire more staff.
TAX RELIEF FOR SMALL BUSINESSES
In 2021-22, the tax rate for businesses (with a turnover less than $50 million) has been reduced to 25% – the lowest rate in 50 years.
For unincorporated businesses (turnover less than $5 million), the tax offset will increase from 13% to 16% (capped at $1,000).
Since 2017, the rate of company tax for small and medium businesses has reduced from 30%.
The Morrison Government’s small business tax relief is supporting 3.4 million small businesses employing over 7 million Australians.
To unlock investment, the Morrison Government has expanded the successful Instant Asset Write Off.
Over 99% of businesses are able to write off the full value of any eligible asset they purchase for their business.
This will be available for small, medium and larger businesses with a turnover of up to $5 billion until June 2023.
For example, this means a trucking company can upgrade their fleet, a farmer can buy a new harvester and a manufacturer can expand their production line.
Small businesses benefit from buying, selling, delivering and installing these assets.
Every sector of our economy can benefit, creating jobs around the country.
MAKING MULTINATIONALS PAY THEIR FAIR SHARE
Australia now has some of the strongest multinational tax laws in the world. This includes the Multinational Anti-Avoidance Law and the Diverted Profits Tax.
Since July 2016, the ATO has raised more than $20 billion in additional tax from large companies, multinationals and wealthy individuals through these rules.
STOPPING LABOR’S TAXES
At the last election, Labor wanted higher taxes – on retirees, housing, income, investments, family businesses, electricity and cars.
By stopping these Labor taxes at the last election, Australia was saved from a devastating hit to our economy at a critical time.
When it comes to tax, Australians simply can’t believe Labor’s flip-flops.
Labor can’t manage money, which means they come after yours.
David James Connolly