As we’re getting closer to the end of the financial year, Associate Director of Tax And accounting Andrew Patrick outlines some changes to this financial year’s income tax.
Increased income tax thresholds
The 2018-19 financial year has seen an increase of the 32.5% tax bracket, which will increase from $87,000 to $90,000.
New low and middle income tax offset
A new low and middle income tax offset applies for the 2018-19 financial year.
Australian resident individuals (and certain trustees), whose income does not exceed $125,333 are entitled to the new low and middle income tax offset. Entitlement to the new offset is in addition to the existing low income tax offset, and is available on assessment after you lodge your income tax return.
If your income:
- does not exceed $37,000 you are entitled to $200
- exceeds $37,000 but does not exceed $48,000, you are entitled to $200 plus 3% of the amount of the income that exceeds $37,000
- exceeds $48,000 but not $90,000, you are entitled to $530
- exceeds $90,000 you are entitled to $530 less 1.5% of the amount of the income that exceeds $90,000.
Sound complicated? It doesn’t have to be. We’re here to guide you and advise you through your tax return. Simply call us on 07 5444 1022 to make an appointment with one of our expert accountants for a hassle-free 2018-19 tax return.