In the 2019–20 Federal Budget, the Government announced its intention to change and build on the Personal Income Tax Plan. These changes are now law.
From the 2018–19 income year:
- The low and middle-income tax offset increases from a maximum amount of $530 to $1,080 per annum and the base amount increases from $200 to $255 per annum.
- Taxpayers with a taxable income:
- of $37,000 or below can now receive a low and middle-income tax offset of up to $255.
- above $37,000 and below $48,000 can now receive $255, plus an amount equal to 7.5% to the maximum offset of $1,080.
- above $48,000 and below $90,000 are now eligible for the maximum low and middle-income tax offset of $1,080.
- above $90,000 but is no more than $126,000 are now eligible for a low and middle-income tax offset of $1,080, less an amount equal to three percent of the excess.
- Check your practice management software for updates to ensure you are using the correct rates and thresholds when processing your clients’ returns.
