Many Australians lodging their tax returns over the next few weeks will find themselves more than $1000 richer after parliament passed the Morrison government's signature tax cut package.
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The government secured the crossbench support it needed to pass the $158 billion plan unchanged through the Senate on Thursday evening.
The first stage of the tax plan will deliver up to $1080 to low and middle-income earners when they lodge their tax returns for 2018/19.
The second stage delivers a 19 per cent tax rate from 2022/23 to people earning up to $45,000.
The final stage due in 2024/25 flattens the tax rate to 30 per cent for people earning between $45,000 and $200,000.
Labor tried in vain to amend the bill to strip out the third stage and deliver the second stage sooner.
But the opposition voted in favour of the legislation, which passed 56 votes to nine, arguing it wouldn't oppose tax cuts for workers.
Read more: Tax cuts to bring relief to workers
What will you get from the tax package?
STAGE ONE:
* A tax offset for people earning low and middle incomes will be doubled for the 2018/19 and 2019/20 financial years.
* The change means singles will get up to $1080, while dual-income families could score up to $2160 each year.
STAGE TWO:
* From 2022/23, the government will lift the upper threshold for the 19 per cent tax bracket from $41,000 to $45,000.
* At the same time, the low income offset will be increased from $645 to $700.
STAGE THREE:
* From July 1, 2024, the 32.5 per cent tax rate will drop to 30 per cent.
* That means all Australians earning between $45,000 and $200,000 will be on the 30 per cent rate.
THE LONG-TERM BENEFIT:
* Over a decade, the government says its plan means someone with an average taxable income of about $60,000 would be more than $15,000 better off.
- with Marnie Banger
AAP
