Legislators have passed the Revenue Bill 2006, to implement two tax relief measures tabled in the 2006-07 Budget that could save taxpayers up to $2.7 billion.

The first measure lowers the marginal rates of the second, third and top tax bands by 1% from the existing levels of 8%, 14% and 20%, while the standard rate will remain unchanged.

The concession granted on reduced marginal tax rates will take effect from the 2006-07 assessment year and are forecast to cost the Government $1.5 billion in a full year.

The second measure is to extend the limit for deduction for home loan interest from seven to 10 years, subject to the maximum annual deduction of $100,000.