The Australian government's seven-year Personal Income Tax (PIT) Plan from the 2018/19 federal Budget applies from 1 July 2018 to provide tax relief to individual taxpayers through lower PIT rates and a new low and middle tax offset. The Government has since enacted its 2019/20 Budget proposal to provide further tax relief to low to middle income earners, including a retrospective increase to the maximum amount of the low and middle income tax offset from 1 July 2018 and a plan that will see around 94 per cent of Australian resident individual taxpayers face a marginal tax rate of 30 per cent or less in the 2024/25 and later income years. See the Taxes on personal income section for more information.
A series of measures relating to investment in Australian housing may affect certain individuals. From 1 July 2018, individuals aged 65 years or over can use the proceeds from the sale of their main residence to make ‘downsizer contributions’ to a complying superannuation fund. In addition, under the First Home Super Saver Scheme, from 1 July 2018, an individual can apply to have a fund release voluntary superannuation contributions, along with associated earnings, to help purchase their first home. See the Other Taxes section for more information.
From 1 January 2019, most feminine hygiene products are goods and services tax (GST)-free. See the Other Taxes section for more information.
Australia and Israel signed a new tax treaty on 28 March 2019 which, following its entry into force, will represent the first tax treaty between the two countries. Furthermore, the Organisation for Economic Co-operation and Development (OECD) Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (MLI) applies in Australia in respect of ‘covered countries’ (including France, Japan, New Zealand, and the United Kingdom) from as early as 1 January 2019. See the Foreign tax relief and tax treaties section for more information.