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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