2019 Budget - CHANGES FOR INDIVIDUAL AND BUSINESS

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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

The Medicare levy low-income thresholds for singles and families, as well as seniors and pensioners, has been increased from the 2018-19 income year as follows:
> for singles, the threshold will be increased from $21,980 to $22,398;
> for families, the threshold will be increased from $37,089 to $37,794;
> for single seniors and pensioners, the threshold will be increased from $34,758 to $35,418;
> the family threshold for seniors and pensioners will be increased from $48,385 to $49,304.

Note also that for each dependent child or student, the family income thresholds increase by a further $3,471, instead of the previous amount of $3,406.

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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