Australia

Individual - Significant developments

Last reviewed - 30 June 2021

The Federal Government brought forward personal tax cuts from 1 July 2020, which will continue until the next phase of tax reductions, which is scheduled to commence from 1 July 2024. The Low and Middle Income Tax Offset, which can apply to reduce the overall tax payable for those with taxable income of less than 126,000 Australian dollars (AUD), was also extended to apply until 30 June 2022. See the Taxes on personal income section for more information.

A number of superannuation thresholds were changed with effect from 1 July 2021. This includes an increase to the mandatory superannuation guarantee percentage from 1 July 2021 where employers are required to contribute 10% (previously 9.5%) of an employee's earnings base, subject to limited exceptions, to a registered superannuation fund or retirement savings account on behalf of the employee, and also increases applicable from 1 July 2021 to the concessional superannuation contribution limits and the non-concessional (i.e. non-deductible) contribution limits. See the Other taxes section for more information.

The Australian Taxation Office (ATO) continues to run its high wealth private groups tax performance programme, which covers Australian resident individuals who, together with their associates, control wealth of more than AUD 50 million. The aim of this programme is to provide greater assurance to the community that high wealth private groups are paying the right amount of tax. See the Tax administration section for more information.