1 July 2018 Personal income tax cuts
New personal income tax rates come into effect from 1 July 2018.
The top threshold of the 32.5% personal income tax bracket will increase from $87,000 to $90,000.
Dovetailing into the tax bracket change is the introduction of the Low and Middle Income Tax Offset for those with taxable incomes up to $125,333. The offset is a non-refundable tax offset that you receive when you lodge your income tax return.
If your annual taxable income is $80,000 in 2018-19, then the personal income tax changes provide an annual tax reduction of $530 per year. If your annual taxable income is $120,000, then the changes give you an annual reduction of $215.
New minimum pay rates from 1 July 2018
New award wages and allowances come into effect from 1 July 2018. If you’re an employer, it’s important that you are aware of the new rates and apply them. The Fair Work Ombudsman’s online Pay Calculator can help you determine the right rates to apply.
Carrick Aland has experience and can assist you in the following areas of tax:
- Income Tax
- Goods and Services Tax (GST) Statements (BAS)
- Fringe Benefits Tax (FBT)
- Capital Gains Tax (CGT)
- Payroll Tax
- Stamp Duty
For more information and a detailed analysis of your taxation situation, call a team member today on 07 4669 9800.