Note: Previously, in rare bipartisanship, the ALP supported the Coalition’s decision to temporarily increase the marginal tax rate by 2 percentage points for those Australians earning more than $180,000. The higher tax rate became law, and applies from 1 July 2014 until 30 June 2017 (3 financial years). In the 2016 Federal Budget, the Coalition confirmed it would cease the TBRL as legislated, but the ALP had announced that it would re-introduce the levy if it won the 2016 Federal Election on 2 July, which it didn’t win. With the re-election of the Coalition government, the TBRL will cease on 30 June 2017.
In the May 2014 Federal Budget, the Coalition government announced that from 1 July 2014, a Temporary Budget Repair Levy (TBRL) would be imposed on an individual’s taxable income exceeding more than $180,000. The TBRL (read ‘higher income tax’) became law, and is now 2% of any income above $180,000; which effectively means the marginal tax rate at that level has increased by 2% to 47% (plus 2% Medicare Levy).