2019 Tax updates

Dear our valued clients,

A new financial year is approaching and we would like to provide our clients the latest tax updates to get you one step ahead of tax planning for the year to come.

1. Individual income tax rates change.

The above rates do not include the Medicare levy of 2%.

The above rates include changes announced in the 2018-19 Federal Budget.

2. Work-related car deductions.

Rate used for cent per km method to calculate work-related car expenses increased to 68 cents per km from 2018-19. It was set at 66 cents per km for the 2015–16, 2016–17 and 2017–18 income years.

3. Instant asset write-off

On January 29, 2019 the Prime Minister announced that the instant asset write-off would be extended to 30 June 2020 and that the threshold would be increased to $25,000. These changes take effect from January 29, 2019.

4. New low and middle income tax offset

For 2018-19, 2019-20, 2020-21 and 2021-22 income years

If your income:

– does not exceed $37,000 you are entitled to $200
– exceeds $37,000 but does not exceed $48,000 you are entitled to $200 plus 3% of the amount of the income that exceeds $37,000
– exceeds $48,000 but not $90,000, you are entitled to $530
– exceeds $90,000 you are entitled to $530 less 1.5% of the amount of the income that exceeds $90,000.

5. GST at settlement for purchase of new residential properties

On or after 1 July 2018, certain purchasers of new residential premises or potential residential land will be required to withhold an amount from the price and pay to ATO.

The amount a purchaser must withhold and pay to us is generally either:

– 1/11th of the contract price (for fully taxable supplies)
– 7% of the contract price (for margin scheme supplies), or
– 10% of GST exclusive market value of the supply (for supplies between associates for consideration less than GST inclusive market value).

6. HELP debt repayment.

The compulsory repayment threshold for the 2018-19 income year is $51,957. It was $55,874 for the 2017-18 income year.

 

Need help with your individual or business Tax Return?

Contact us at (02) 4229 5133 or enquiries@ttran.com.au

 

Teresa Tran & Associates

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