Tax time is around the corner and while this one will remain the same as it was under the previous government, Labor has its own plan for your taxes.
However, Prime Minister Anthony Ablanese has made it clear that promises already made to the Australian people from either side of politics will be honoured.
Here’s what you can expect from our new Government.
Tax cuts to remain
“People are entitled to operate on the basis of that certainty,” Albanese said in an interview yesterday.
What are the stage three tax cuts?
Essentially, the stage three tax cuts will remove an entire income tax bracket.
This means anyone earning between $45,000 and $200,000 will be taxed at the same rate of 30 cents in the dollar.
Previously, those earning more than $45,000 were taxed at 32.5 cents in the dollar and those at the top end were taxed at 37 cents in the dollar.
Negative gearing and capital gains tax
The Labor Party ditched its efforts to curb negative gearing and capital gains tax (CGT) deductions for investors.
Labor had been fighting to curb the two measures since 2015.
Labor’s CGT policy proposed halving the 50 per cent tax discount on assets sold after an investor had held them for 12 months.
And its negative gearing policy would have confined tax deductions to newly built properties only.
Taxes on multinational companies
Labor plans to crack down on multinational companies it claims have not been paying their fair share of taxes in Australia.
Labor said it would tackle multinational tax avoidance in four ways:
Supporting the OECD's Two-Pillar Solution for a global 15 per cent minimum tax, and ensuring some of the profits of the largest multinationals - particularly digital firms - were taxed in the country the products or services were sold
Limiting debt-related deductions by multinationals at 30 per cent of profits, consistent with the OECD's recommended approach, while maintaining the arm's-length test and the worldwide gearing ratio
Limiting the ability for multinationals to abuse Australia's tax treaties when holding intellectual property in tax havens
Introducing transparency measures, including reporting requirements on tax information, beneficial ownership, tax-haven exposure and in relation to government tenders