This request sought estimated financial implications and distributional analysis of Stage 3 of the personal income tax plan as set out in the 2018-19 Budget measure Personal income tax plan and the 2019-20 Budget measure Lower taxes for hard-working Australians: Building on the Personal Income Tax Plan over the period to 2031-32.

The stage 3 tax cuts involve:

• removing the $120,000 to $180,000 tax bracket
• increasing the top tax bracket threshold from $180,000 to $200,000
• reducing the marginal tax rate faced by the $45,000 to $200,000 tax bracket from 32.5 per cent to 30 per cent.

The Stage 3 tax cuts take effect from 1 July 2024.

The distributional analyses sought are the aggregate change in tax paid for taxpayers affected by the Stage 3 tax cuts split by:

• taxable income quintiles
• gender
• the following taxable income brackets:
  • Less than $45,000
  • $45,001 to $60,000
  • $60,001 to $90,000
  • $90,001 to $120,000
  • $120,001 to $150,000
  • $150,001 to $180,000
  • Greater than $180,000.
• taxable income for the top 1 percentile of taxpayers.

In addition, the request sought the average change in tax paid by taxable income quintile and by gender.