The proposed income tax cuts are now law. The immediate change is the extension of the low income tax offset to a low and middle tax offset which will result in a $1,080 offset for taxpayers with incomes between $48,000 and $90,000. Details of the thresholds below:-
|Taxable Income Range (S)||Low & Middle Income Tax Offset Amount|
|$0 – $37,000||Up to $255|
|$37,000 – $48,000||$255 plus 7.5 cents per dollar of income above $37,000|
|$48,001 – $90,000||$1080|
|$90,001 – $126,000||$1080 less 3 cents per dollar of income above $90,000|
|$126,000 & above||$0|
The extension of the offset gives incentive to those taxpayers impacted to lodge their returns as soon as possible. However the ATO is encouraging taxpayers to wait until at least until 31 July to give employers time to finalise their employees’ income statements and for third-party data such as dividends, interest, share disposals to be progressively uploaded onto the ATO systems.
This document contains general advice only and is prepared without taking into account your particular objectives, financial circumstances and needs. The information provided is not a substitute for legal, tax and financial product advice. Before making any decision based on this information, you should speak to a licensed financial advisor who should assess its relevance to your individual circumstances. While The Field Group believes the information is accurate, no warranty is given as to its accuracy and persons who rely on this information do so at their own risk. The information provided in this bulletin is not considered financial product advice for the purposes of the corporations Act 2001.