Australia

Individual - Significant developments

Last reviewed - 27 June 2022

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 increased to a maximum of AUD 1,500 for the year ended 30 June 2022, after which time this offset will no longer apply. See the Taxes on personal income section for more information.

There was an increase to the mandatory superannuation guarantee percentage from 1 July 2022, where employers are required to contribute 10.5% (previously 10%) of an employee's earnings base, subject to limited exceptions, to a registered superannuation fund or retirement savings account on behalf of the employee. See the Other taxes section for more information.

A tax deduction is allowed for COVID‑19 tests (including polymerase chain reaction and rapid antigen tests) from 1 July 2021 where they are purchased for work‑related purposes. See Deductions section for more information.

There is a temporary 50% reduction from 30 March 2022 until 28 September 2022 for fuel excise. 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.