Tax changes in the New Financial Year
Tax changes you may face in the New Financial Year
Everyday Australian’s are set to experience several changes in the new financial year that has commenced from 01 July 2019. The tax changes are introduced as a result of the most recent federal budget and are set to affect every Australian individual, family and corporation in one way or another. Read below to find out how and what changes implemented or to be implemented will affect you.
Low to Middle Income Earner Tax Benefits
A recent change that has been implemented gives income tax relief to low- and middle-income earners as a result of the 2019-2020 Federal Budget.
- The changes ensure that low to middle income earners will see a reduced tax amount up to $1080 per annum.
- If you’re a taxpayer earning less than $37,000, you may be entitled to receive $255, plus an amount equal to 7.5% to the maximum offset of up to $1080.
- Taxpayers with taxable income between $48,000 and $90,000 will now be eligible for the tax offset of $1080.
The ATO has announced it has implemented the policy starting the new financial year that commenced 01 July 2019, after the tax relief passed Federal parliament on 4 July and receiving royal assent on 5 July 2019 just in time for lodgment of tax returns for the 2018-19 financial year.
Family Tax Benefits for High Income Earners
The threshold for high income earners is set to increase from $94,316 to $98,988 for the family tax benefit. If you’re earning above this amount your benefit is set to be reduced by 30% for every dollar earnt over $98,988.
Lodging your return done differently:
There are some significant changes as to how you manage your super and tax details. Starting from this financial year you will not receive payment summaries from your employer, rather, this information will be accessible by logging into myGov and if you have not already done so, linking you myGov account and the ATO online service.
Tax Changes for Small Businesses:
From July 01 all small business are required to switch to an online payroll system called the ‘Single Touch Payroll.’ This method allows the ATO to see whether employees’ wages and super is paid out in a compliant manner.
Small business can now claim deductions for business expenses that cost less than $30,000.
Minimum Wage Increase:
The national minimum is expected to be increased by 3% from the first full pay period on or after 01 July 2019. The decision to increase minimum wages from $719.20 to $740.78 on the basis of 38 ordinary hours of work is set to affect 21% of Australian employees.
From 01 July 2019, The Protecting Your Super Package (PYSP) will come into action. Meaning inactive superannuation accounts or accounts that have not received contributions in over 16 months or more, with an amount less then $6000 will be either shut down permanently or no longer provide default life insurance. However, exit fees from super companies will be a thing of the past allowing Australian’s to roll over and move their money to a super that suits them best.
Please be aware that this is a brief informative guide on the changes implemented or in the process of implementation and further detailed advice can be given depending on your own specific circumstances.
If you wish lodge your individual / trust / company tax returns please contact us at Karolidis & Co on (03) 9942 7790 or email firstname.lastname@example.org for further information and advice.