Carbon pricing mechanism—personal income tax reform

Image source: yourhome.gov.au

As part of its Clean Energy Future package, the Government has announced a series of personal income taxation reforms. This will involve increases to the marginal taxation rates in 2012-13 and 2015-16, as well as changes to the tax free threshold and low income tax offset.

The Parliamentary Library has prepared a brief on the proposed changes, which is available on its climate change website. The brief presents the details of the proposed tax reform, compares it to the personal income tax reform proposed by the Australia's Future Tax System review, and presents the changes to the marginal income taxation rates and thresholds since 1983-84.