What's new and proposed from July 2018 - TAX 06 Jun 2018

Blog / Financial Planning


CHANGES TO PERSONAL INCOME TAX - PROPOSED
In the 2018/19 Federal Budget, the Government announced a seven year personal income tax plan.

For 2018/19, they proposed:

  • Introduction of the Low and Middle Income Tax Offset of up to $530pa
  • Extend the top threshold for the 32.5% personal income tax bracket from $87,000 to $90,000 (applies to residents and non-residents)

Low and Middle Income Tax Offset
Taxable income (TI) Change in offset (CI) Maximum offset
$0 - $37,000 Nil $200
$37,001 - $48,000 (TI - $37,000) x 0.03 $200 + CI
$48,001 - $90,000 Nil $530
$90,001 - $125,333 (TI - $90,000) x 0.015 $530 + CI

Propsed resident marginal tax rates for 2018/2019
Taxable income Rate
$0 - $18,200 0%
$18,201 - $37,000 19% over $18,200
$37,001 - $90,000 $3,572 + 32.5% over $37,000
$90,001 - $180,000 $20,797 + 37% over $90,000
$180,001 + $54,097 + 45% over $180,000


EXTENDING ACCELERATED DEPRECIATION FOR SMALL BUSINESSES - PROPOSED
In the 2018/19 Federal Budget, the Government announced they will extend the existing $20,000 instant asset write-off to 30 June 2019 for businesses with aggregated annual turnover of less than $10 million.

Under this measure, small businesses will be able to immediately deduct purchases of eligible assets costing less than $20,000 where they are installed and ready for use before 30 June 2019.

COMPANY TAX RATE - LEGISLATED
The 27.5% company tax rate will apply to base rate entities from 1 July 2018 with turnover of less than $50 million (previously $25 million). The tax rate that applies for all other companies is 30%.



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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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