Budget 2013-2014 The 2015 Tax-Free Threshold Increase, Deferred
27 May 13
31/05/13
Personal Tax Rates – 2015 Tax Free Threshold increase “deferred”
The Budget papers confirmed the Government announcement that the already legislated increase in the tax-free threshold to $19,400 from 1 July 2015 will not proceed – it will be “deferred”.
The deferral of the so-called Clean Energy Future personal tax cuts came about due to the lower than originally anticipated carbon price after 1 July 2015. The tax-free threshold change would be deferred until such time as the carbon price exceeds $25.40 a tonne, whenever that may be.
The change was a deferral, not an abolition because, when the carbon price rises again in the future, those tax cuts will still be implemented at that point in time.
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