Tax bracket changes passed
In the 2019-20 Federal Budget, the Government announced their plans to change and build on the Personal Income Tax Plan. These changes affect the low and middle-income tax brackets and were passed on 5 July 2019.
The Budget proposed that from the 2018-19 income year:
- There will be an increase to the low and middle-income tax offset from a maximum amount of $530 to $1,080 per annum and an increase in the base amount from $200 to $255 per annum.
- Taxpayers with a taxable income which does not exceed $37,000 will receive a low and middle-income tax offset of up to $255.
- Taxpayers with a taxable income which exceeds $37,000 but is not more than $48,000 will receive $255, plus an amount equal to 7.5% to the maximum offset of $1,080.
- Taxpayers with a taxable income which exceeds $48,000 but is not more than $90,000 will be eligible for the maximum low and middle-income tax offset of $1,080.
- Taxpayers with a taxable income which exceeds $90,000 but is not more than $126,000 will be eligible for a low and middle-income tax offset of $1,080, less an amount equal to 3% of the excess.
Assessments for returns that have already been lodged are expected to be issued from 12 July and into the following week, which is in line with the normal processing of refunds for the end of financial year. Individuals and tax professionals will not need to request these assessments.
Amended notices of assessment can be accessed through the ATO website. For those individuals that have linked the ATO to their myGov account, they will be notified in their myGov Inbox.