2019 Budget - CHANGES FOR INDIVIDUAL AND BUSINESS
Low & Middle-Income Tax
Offset (LMITO)
Available: from 2019- 2022 years
A new offset is
available from 2018-19 in addition to the Low-Income Tax Offset (LITO) of $445
·
It is a Non-refundable
tax offset
·
2019 Budget changed the maximum LMITO from $530 to
$1080 per annum and Base rate from $200 to $255. So, the LMITO will increase by
7.5% after $37000 to $48000 income to make it $1080 at $48000 and then it will
remain $1080 till income of $90,000 before starting to reduce by 3%..
Tax Rates for Individuals
Medicare Levy
INSTANT WRITE OFF FOR
BUSINESS ASSETS
·
With effect from 7.30pm on 02.04.2019 till 30.06.2020
the immediate write off threshold will be increased to $30,000.
·
From 02.04.2019, The write off is not only available
to Small Business Entities with turnover of less than $10 million but also to
Medium Sized Business Entities with turnover of less than $50 Million
·
In summary, if the legislation is passed as proposed
then the following instant write off will apply to a Small Business Entity for
2019:
1
July to 28 January 2019 – less than $20k
2
29 January to before 7:30pm 02.04.2019 – less than
$25k
3
from 7:30pm on 02.04.2019 till 30.06.2020 – less than
30k
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