Treasury Laws Amendment (More Cost of Living Relief) Act 2025

No. 28, 2025

An Act to amend the law relating to taxation, and for related purposes

Contents

1 Short title 1

2 Commencement 2

3 Schedules 2

Schedule 1—New tax cuts for every Australian taxpayer 3

Income Tax Rates Act 1986 3

Schedule 2—Increasing the Medicare levy low‑income thresholds 5

A New Tax System (Medicare Levy Surcharge—Fringe Benefits) Act 1999 5

Medicare Levy Act 1986 5

Treasury Laws Amendment (More Cost of Living Relief) Act 2025

No. 28, 2025

An Act to amend the law relating to taxation, and for related purposes

[Assented to 27 March 2025]

The Parliament of Australia enacts:
1 Short title

This Act is the Treasury Laws Amendment (More Cost of Living Relief) Act 2025.
2 Commencement 1

Each provision of this Act specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.
Commencement information Commencement information Commencement information
Column 1 Column 2 Column 3
Provisions Commencement Date/Details
1. The whole of this Act The day after this Act receives the Royal Assent. 28 March 2025

Note: This table relates only to the provisions of this Act as originally enacted. It will not be amended to deal with any later amendments of this Act.

 2

Any information in column 3 of the table is not part of this Act. Information may be inserted in this column, or information in it may be edited, in any published version of this Act.
3 Schedules

Legislation that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.
New tax cuts for every Australian taxpayer

Income Tax Rates Act 1986

 1 Clause 1 of Part I of Schedule 7 (table heading)

Repeal the heading, substitute:

 2 At the end of clause 1 of Part I of Schedule 7

Add:

 Increasing the Medicare levy low‑income thresholds

A New Tax System (Medicare Levy Surcharge—Fringe Benefits) Act 1999

 1 Paragraphs 15(1)(c) and 16(2)(c)

Omit “$26,000”, substitute “$27,222”.

Medicare Levy Act 1986

 2 Subsection 3(1) (paragraph (a) of the definition of phase-in limit)

Omit “$51,361”, substitute “$53,775”.

 3 Subsection 3(1) (paragraph (c) of the definition of phase-in limit)

Omit “$32,500”, substitute “$34,027”.

 4 Subsection 3(1) (paragraph (a) of the definition of threshold amount)

Omit “$41,089”, substitute “$43,020”.

 5 Subsection 3(1) (paragraph (c) of the definition of threshold amount)

Omit “$26,000”, substitute “$27,222”.

 6 Subsection 8(5) (definition of family income threshold)

Omit “$43,846”, substitute “$45,907”.

 7 Subsection 8(5) (definition of family income threshold)

Omit “$4,027”, substitute “$4,216”.

 8 Subsections 8(6) and (7)

Omit “$43,846”, substitute “$45,907”.

 9 Subsection 8(7)

Omit “$57,198”, substitute “$59,886”.

 10 Paragraph 8D(3)(c)

Omit “$26,000”, substitute “$27,222”.

 11 Subparagraph 8D(4)(a)(ii)

Omit “$26,000”, substitute “$27,222”.

 12 Paragraph 8G(2)(c)

Omit “$26,000”, substitute “$27,222”.

 13 Subparagraph 8G(3)(a)(ii)

Omit “$26,000”, substitute “$27,222”.

 14 Application provision

The amendments made by this Schedule apply in relation to assessments for the 2024-25 year of income and later years of income.

[Minister’s second reading speech made in—

House of Representatives on 26 March 2025

Senate on 26 March 2025]

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