Accelerated personal tax cuts
The Government announced it will bring forward Stage 2 of its Personal Income Tax Plan by two years to 1 July 2020, while retaining the low and middle income tax offset (LMITO) for 2020-21. 

Under the revised plan:
• the upper income threshold of the 19% personal income tax bracket will increase from $37,000 to $45,000; and
• the upper income threshold of the 32.5% personal income tax bracket will increase from $90,000 to $120,000.

Stage 3 of the Personal Income Tax Plan remains unchanged and commences in 2024-25 as legislated.
The personal tax rates as proposed in the budget are as follows:

Tax Rate Income Range
Current from 1 July 2018
Stage 2
Income Range 
Proposed start date of 1 July 2020
Stage 3
Income Range
From 1 July 2024
0% $0 - $18,200 $0 - $18,200 $0 - $18,200
19% $18,201 - $37,000 $18,201 - $45,000 $18,201 - $45,000
30% - - $45,001 - $200,000
32.5% $37,001 - $90,000 $45,001 - $120,000 -
37% $90,001 - $180,000 $120,001 - $180,000 -
45% $180,001+ $180,001+ $200,001+
Low income tax offset Up to $445 Up to $700 Up to $700
Low and middle income tax offset Up to $1,080 Up to $1,080 -

A summary of the tax benefit based on the stage 2 changes is as follows:

Taxable Income Tax Benefit
$0 - $37,000 Up to $255
$37,001 - $90,000 Up to $1,080
$90,001 - $120,000 $1,080 to $2,430
$120,000 + $2,430

Coronavirus supplement
The government previously established a time limited coronavirus supplement of $550 per fortnight for both existing and new recipients of JobSeeker Payment, Youth Allowance, Parenting Payment, Austudy, ABSTUDY Living Allowance, Farm Household Allowance, Special Benefit and other eligible income support recipients.

From 25 September 2020 this supplement will change to $250 per fortnight and continue until 31 December 2020.

The Government also announced it will also provide two separate $250 support payments, to be made from November 2020 and early in 2021 to eligible income support recipients and health care card holders.

Exempting granny flat arrangements from capital gains tax
The Government is providing a capital gains tax (CGT) exemption for granny flat arrangements where there is a formal written agreement. The exemption will apply for arrangements with older Australians or those with a disability. The measure will be in place from the first income year after the date of Royal Assent of the enabling legislation.