Summary
Amends the:
Income Tax Rates Act 1986
to: reduce the 47 and 42 per cent personal income tax rates to 45 and 40 per cent, respectively; and increase the personal income tax thresholds for all tax brackets;
Fringe Benefits Tax Act 1986
to reduce the fringe benefits tax rate;
Income Tax Assessment Act 1936
to: increase the low income tax offset; and increase the income threshold from which the tax offset begins to phase-out;
Medicare Levy Act 1986
to: increase the Medicare levy income threshold for taxpayers who are eligible for the senior Australians tax offset; and reduce the Medicare levy phase-in rate; and
Income Tax Assessment Act 1997
and
Income Tax (Transitional Provisions) Act 1997
to increase deductions for the decline in value of depreciating assets under the diminishing value method and project pools for assets that a taxpayer starts to hold on or after 10 May 2006. Also makes amendments consequential on the reduction in personal income tax rates to 7 other Acts.