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

The PRESIDENT (23:18): I will now deal with the Committee of the Whole amendments circulated by Pauline Hanson's One Nation. The question is that the amendment on sheet 3343 be agreed to. Pauline Hanson's One Nation's circulated amendment— (1) Page 6 (after line 13), at the end of the Bill, add: Schedule 3 — Indexation of income tax thresholds Income Tax Rates Act 1986 1 Subsection 3(1) Insert: income tax threshold means the following amounts (subject to indexation under section 20A): (a) the dollar amount mentioned in the definition of tax-free threshold in this subsection; (b) each dollar amount mentioned in the tables in clause 1 of Part I of Schedule 7 (table dealing with tax rates for resident taxpayers); (c) each dollar amount mentioned in the table in clause 1 of Part II of Schedule 7 (table dealing with tax rates for non-resident taxpayers); (d) each dollar amount mentioned in the table in clause 1 of Part III of Schedule 7 (table dealing with tax rates for working holiday makers). 2 At the end of Part II Add: Division 5 — Indexation of income tax thresholds 20A Indexation of income tax thresholds Indexation The income tax threshold.immediately before the indexation day x Indexation factor.For the indexation day (1) On 1 July 2025 and each later 1 July (the indexation day), each income tax threshold is replaced by the amount worked out using the following formula: (2) However, subsection (1) does not apply for an indexation day if the indexation factor for the indexation day is 1 or less.

(3) The amount worked out under subsection (1) is to be rounded to the nearest whole dollar (rounding 50 cents upwards). Indexation factor (4) The indexation factor for an indexation day is the number worked out using the following formula: Sum of the index numbers for the quarters in the 12 months ending with reference quarters Sum of the index numbers for the quarters in the 12 months ending with reference quarters Note: For index number, reference quarter and base quarter see subsection (8).

(5) The indexation factor is to be worked out to 3 decimal places (rounding up if the fourth decimal place is 5 or more). Changes to CPI index reference period and publication of substituted index numbers (6) Amounts are to be worked out under this section: (a) using only the index numbers published in terms of the most recently published index reference period for the Consumer Price Index; and (b) disregarding index numbers published in substitution for previously published index numbers (except where the substituted numbers are published to take account of changes in the index reference period).

Publication of income tax thresholds (7) The Commissioner must, by notifiable instrument, publish the amounts worked out under subsection (1) for an indexation day as soon as practicable before the indexation day. Definitions (8) In this section: base quarter means the last March quarter before the reference quarter. index number, for a quarter, means the All Groups Consumer Price Index number (being the weighted average of the 8 capital cities) published by the Australian Statistician for that quarter.

March quarter means a period of 3 months starting on 1 January. reference quarter means the last March quarter before the indexation day.