Labor’s Tax Cuts Pass Lower House, Now Set for Senate Debate

The surprise tax cut lowers the 16 percent tax rate to 14 percent in two years.

Australian Parliament House is seen behind a ‘Pay Here’ sign at a parking pay station in Canberra, Australia, on March 21, 2025. AAP Image/Lukas Coch

The biggest surprise in Labor’s election budget—tax cuts for low income earners—has sailed through the House of Representatives and will now be debated in the Senate.

Treasurer Jim Chalmers introduced the bill during budget night, which will lower the 16 percent tax rate (for those earning $18,201 and $45,000), to 15 percent next year and 14 percent the year after.