Treasury Laws Amendment (Personal Income Tax Plan) Bill 2018 04 Jul 2018

Blog / Financial Planning

The Treasury Laws Amendment (Personal Income Tax Plan) Bill 2018 received royal assent on 21/6/2018. This bill introduces the Personal Income Tax Plan announced in the 2018 Federal Budget. The tax plan will be introduced over a seven year period and involves 3 steps:

Step 1: 2018-19 to 2021-22

  • Introduction of a Low and Middle Income Tax Offset of up to $530pa, in addition to Low Income Tax Offset (LITO), from 2018-19 to 2021-22
  • Extend the top threshold for the 32.5% personal income tax bracket from $87,000 to $90,000

Step 2: 2022-23 to 2023-24
  • Extend the top threshold for the 19% personal income tax bracket from $37,000 to $41,000
  • Extend the top threshold for the 32.5% personal income tax bracket from $90,000 to $120,000
  • Increase LITO from $445 to $645

Step 3: 2024-25 and later financial years
  • Removal of the 37% personal income tax bracket
  • Extend the top threshold for the 32.5% personal income tax bracket from $120,000 to $200,000



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Disclaimer and Warning
The information above is of a general nature only.  It should not be used as a source to make financial decisions.  It's also important to note that the legislation and figures related to this topic tend to change regularly and therefore the information above may not reflect the current status.  We recommend that if you are looking for advice on this matter, you should contact us .

 


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