Australia

Individual - Significant developments

Last reviewed - 21 December 2020

The Federal Government has brought forward personal tax cuts from 1 July 2020, which have the effect that the top income level to which the 19% tax bracket applies increased from 37,000 Australian dollars (AUD) to AUD 45,000. See the Taxes on personal income section for more information.

The capital gains tax main residence exemption no longer applies for foreign residents, subject to transitional relief provided in respect of properties held at 9 May 2017 disposed of on or before 30 June 2020, and an exception where the residence is sold as a result of certain 'life events'. See the Income determination section for more information.

The double tax treaty (DTT) signed by Australia and Israel on 28 March 2019 entered into force and applies in respect of withholding taxes (WHTs) from 1 January 2020. See the Foreign tax relief and tax treaties section for more information.

The Australian Taxation Office (ATO) has a 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.