Political News

BUDGET - Tax Free Threshold Increase for Seniors

22nd May, 2001

The Government will increase the maximum low income aged persons rebate and pensioner rebate for persons of age pension age to $2,230 for singles and $1,602 for each member of a couple, with effect from the current 2000-01 income year.

This measure will allow senior Australians to have income of $20,000 without paying income tax. This compares to $12,652 in 1999-00. Senior couples will be able to have income of up to $32,612 combined without having to pay tax, compared to $21,524 in 1999-00.

The increase in the Medicare levy threshold to $20,000 for senior Australians, also announced in this Budget, will ensure that single senior Australians with incomes up to $20,000 are completely free from income tax and Medicare levy. See Press Release No. 35 Senior Australians and Pensioners: Increase in Medicare levy threshold.

Single senior Australians on incomes less than $20,000 will now not be obliged to lodge tax returns as a result of the Government’s measures. Senior Australians on incomes less than $20,000 who have had tax amounts withheld will receive a refund when they lodge their 2000-01 income tax return.

The cut-off thresholds for the rebates have increased to $37,840 for singles and $29,122 for each member of a couple. All persons with taxable incomes up to those amounts will pay less tax as a result of this measure.

The higher rebates will benefit around 375,000 senior Australians, including 200,000 age pensioners.