1 July 2018 Personal income tax cuts
The first two stages of the Government's tax cuts have passed through the Senate, so what does this mean for taxpayers?
New personal income tax rates come into effect from 1 July 2018, with the middle tax bracket of the 32.5% personal income tax bracket increasing 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.
For more information, speak to our team on 02 9957 4033.
This article is provided for information purposes only and correct at the time of publication. It should not be used in place of advice from your accountant. Please contact us on 02 9957 4033 to discuss your specific circumstances.