Key legislation was passed by Parliament today which will make the tax system fairer for all taxpayers. These measures will take effect from tomorrow, 1 July, the day Australia moves forward with the introduction of The New Tax System.
From tomorrow, income taxes will be reduced by $12 billion a year, the largest ever legislated and delivered.
From tomorrow, family assistance will be boosted by $2.4 billion a year.
From tomorrow, pensions and allowances will be higher in real terms. Self-funded retirees will benefit from tax cuts, a special bonus, and franking credits becoming refundable.
From tomorrow, company tax will be cut from 36 to 34 per cent, and will be further cut to 30 per cent next year.
And from tomorrow, the complex multi-rate wholesale sales tax will be abolished completely.
From 1 July 2000, there will be new rules to restrict the ability to deduct non-commercial losses against wage and salary income.
The Governments measures to address the alienation of personal services income will protect genuine independent contractors but prevent easy access outside the PAYE by others seeking to minimise tax liability.
Legislation has been passed which will align the deductibility of payments made in relation to tax shelters with the period over which the service is provided, rather than being deductible immediately.
These measures are part of The New Tax System which will commence as from tomorrow.
The Governments reform of personal, business and indirect taxes will boost economic growth, improve Australias international competitiveness and create more jobs. They will be of enduring benefit to the people of Australia.