The proposal would make the following changes.

• Change personal income tax by:
  • abolishing the Medicare levy (but not the Medicare levy surcharge), the low income tax offset, and the low and middle income tax offset
  • increasing the tax‐free threshold to $40,000
  • reducing the marginal tax rate for taxable income above the tax‐free threshold to 20 per cent.
• Reduce the fringe benefits tax (FBT) rate to 20 per cent.
• Set the company tax rate for all entities, including trustees and life insurers, to 20 per cent.
• Abolish the following indirect taxes:
  • tobacco, alcohol and fuel excise
  • customs duties
  • passenger movement charge
  • wine equalisation tax
  • luxury car tax
  • major bank levy.

All changes, except those to FBT, would have effect from 1 July 2019. The changes to FBT would have effect from 1 April 2020. The policy would be announced on 1 July 2019.