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.
We also see 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.
Effect of Tax Offset:
- Taxable Income of $80,000 in 2018-19, then the income tax changes provide an annual tax reduction of $530 per year.
- Taxable income of $120,000 in 2018-19, then the changes give you an annual reduction of $215.
Are you an Employer? 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.