In the 2018-19 Federal Budget, changes to the Personal Income Tax Plan were announced. These changes have been passed, taking effect on July 1, 2018.
There are two changes you need to know about for the coming financial year
- The top threshold of the 32.5% tax bracket has increased from $87,000 to $90,000.
This change applies to residents, foreign-residents and Working Holiday Makers.
Pay as you go withholding rates and schedules will be updated to include the changes.
- A new low and middle income tax offset (which is in addition to the Low Income Tax Offset) will provide a non-refundable tax offset of up to $530 per annum for Australian residents earning less than $125,333.
The offset amount ranges from $200 (for incomes less than $37,000) to $530. The lump sum will be paid after your income tax return is assessed next financial year.
It is expected over 10 million taxpayers will get at least some relief from this new offset. We can help you find out if you’re one of them.
For straight-forward, practical accounting, taxation and financial advice
contact our knowledgeable team at SVA and WPA by calling 02 8850 0388.