New Tax Changes Explained
Description
Rob explains the new tax changes from 1 July 2019 including the Low & Middle Income Tax Offset and the Australian Government's tax plans to 2025. $1,080 could be on it's way to you as part of your 2019 tax return!
Further tax change information included below:
From the 2018–19 income year:
- Increase the low and middle income tax offset from a maximum amount of $530 to $1,080 per annum and increase the base amount from $200 to $255 per annum
- Taxpayers with a taxable income which does not exceed $37,000 will receive a low and middle income tax offset of up to $255
- Taxpayers with a taxable income which exceeds $37,000 but is not more than $48,000 will receive $255, plus an amount equal to 7.5 per cent to the maximum offset of $1,080
- Taxpayers with a taxable income which exceeds $48,000 but is not more than $90,000 will be eligible for the maximum low and middle income tax offset of $1,080
- Taxpayers with a taxable income which exceeds $90,000 but is not more than $126,000 will be eligible for a low and middle income tax offset of $1,080, less an amount equal to 3 per cent of the excess.
From the 2022–23 income year:
- The top threshold of the 19 per cent personal income tax bracket will increase from $41,000 to $45,000 such that the rate of tax on the amount of the taxable income of a resident individual that:
• exceeds $18,200 but is not more than $45,000 is 19 per cent
• exceeds $45,000 but is not more than $120,000 is 32.5 per cent
• exceeds $120,000 but is not more than $180,000 is 37 per cent
• exceeds $180,000 is 45 per cent
- Increase the low income tax offset (LITO) from a maximum amount of $645 to $700 per annum
- Taxpayers with a taxable income which does not exceed $37,500 will receive a LITO of $700
- Taxpayers with a taxable income which exceeds $37,500 but is not more than $45,000 will receive a LITO of $700, less an amount equal to 5 per cent of the excess
- Taxpayers with a taxable income which exceeds $45,000 but is not more than $66,667 will receive a LITO of $325, less an amount equal to 1.5 per cent of the excess.
From the 2024–25 income year:
- The 32.5 per cent marginal tax rate will reduce to 30 per cent such that for a resident individual the rate of tax on the amount of their taxable income that:
• exceeds $18,200 but is not more than $45,000 is 19 per cent
• exceeds $45,000 but is not more than $200,000 is 30 per cent
• exceeds $200,000 is 45 per cent.
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Advice Disclaimer || Any advice given by the presenter/s has been prepared without considering your individual objectives, financial situation or needs. So, before you act on the advice you should think about whether the advice suits your objectives, financial situation or needs. If the advice relates to acquiring a financial product you should obtain a copy of the Product Disclosure Statement for that product and consider it before making a decision. This presentation has been prepared by Consortium Private Wealth Pty Ltd (ABN 74 616 250 965) (AFSL 495401). If you require advice which takes into account your objectives, financial situation and needs you should speak to a financial adviser. Robert Goudie, Ashley Rowan and Olivia Glare are authorised representatives of Consortium Private Wealth Pty Ltd. Registered Office: 24A Darlot Street, Horsham VIC 3400 (ABN 74 616 250 965) (AFSL 495401).
The information provided in this article is general in nature only and does not constitute personal financial advice.