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Personal Income Tax Cuts Passed!

Parliament has passed the Government’s Personal Income Tax plan. This means that the first stage of the proposed personal income tax cuts will start to take effect from 1 July 2018.

According to the Prime Minister, taxes “will now be lower, fairer and simpler”.

The Government’s personal income tax cuts has three steps:

 

1.The Government will introduce the Low and Middle Income Tax Offset (in addition to the Low Income Tax Offset) from 1 July 2018. This is a non-refundable tax offset of up to $530pa.  As such the offset applies to Australian resident low and middle income earners.  This equates to around 10 million taxpayers being eligible to get at least some tax relief from this new offset. The offset is available for the 2019-2022 income tax years and will be received as a lump sum on assessment. It will be calculated after an individual lodges their tax return.

 

You can use our online calculator here to see if you might be eligible. 

 

2.Lifting tax brackets, to protect Australians from the impact of ‘bracket creep’:

– From 1 July 2018, the top threshold of the 32.5% personal income tax bracket will increase from $87,000 to $90,000.

– From 1 July 2022, the 19% personal income tax bracket will increase from

$37,000 to $41,000, and the top threshold of the 32.5% personal income tax bracket will further increase from $90,000 to $120,000. The low income tax offset will also be lifted to $645.

 

3.The 37% tax bracket will be removed entirely from 1 July 2024. The top threshold of the 32.5% personal income tax bracket will be increased from $120,000 to $200,000.

 

What Next:

The tax offset will be calculate automatically when you submit your tax return – if you would like any more advice please contact us here.

 

 

Please Note: Many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances.

Source: National Tax & Accountants’ Association Ltd

SIMMONS LIVINGSTONE & ASSOCIATES GENERAL ADVICE WARNING This information is of a general nature only and neither represents nor is intended to be specific advice on any particular matter. Simmons Livingstone & Associates and Infocus Securities Australia Pty Ltd strongly suggest that no person should act specifically on the basis of the information contained herein but should seek appropriate professional advice based upon their own personal circumstances.

Kris has over 16 years' experience in the business advisory, accounting and taxation industry. His initial years were spent with WHK Group and PKF before founding Simmons Livingstone & Associates in 2013.

As Managing Partner, Kris has steered the firm to success, being instrumental in expansion of the firms client base and subsequent recruitment to increase the professional team size.

He brings his extensive experience within a variety of areas of business services and compliance, and has a proven track record of success with clients from a variety of sectors. Not only is Kris a an exceptionally valuable asset to the firm, his business advice is invaluable for professional service clients, from a financial perspective.

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Kris has a young family and outside of work, when he’s not spending valuable time with the family, you’ll find him on the golf course or sampling a brew with the guys.

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Simons personable service and attention to detail ensures his professional relationships remain strong.  As a partner at Simmons Livingstone, Simon has lead the substantial growth of the firms large corporate space.

Through his sporting connections, Simon also has a strong reputation as an industry leader for professional sports men and women, representing sporting players and companies involved in various professional sporting federations and leagues.

Simon is a former representative golfer, and still enjoys a round most weeks. An avid sports enthusiast, you’ll find him kicking back with a red wine if there’s a good game on.

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Tom has a passion for providing quality advice and exceptional service.

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Tom's extensive network of allied professional services provide the same level of outstanding consultancy, so clients can be assured that any financial problem or opportunity will be addressed with Tom's help.

Outside of work, Tom likes to be outdoors. He plays football and golf amongst other things. You will also find him enjoying good food and good beer with good friends.

Sam is our newest Partner to the Simmons Livingstone & Associates team, working with Tom in our Financial Planning division. 

Sam has a strong passion to educate and inform his clients about the importance of financial planning and getting started early. 

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Sam's greatest asset is his ability to support his clients to better financial wealth using his extensive network. 

 

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