Tax Rates 2018-2019 Year (Residents)
The 2019 financial year starts on 1 July 2018 and ends on 30 June 2019. The financial year for tax purposes for individuals starts on 1st July and ends on 30 June of the following year.
The above tables do not include Medicare Levy or the effect of any Low Income Tax Offset (“LITO”). Medicare Levy is applied on a progressive basis if eligible private health insurance cover is not maintained. There are low income and other full or partial Medicare exemptions available. A Medicare Levy Surcharge may also be applicable.
What’s new in 2018-19?
Here’s a list (not exhaustive) of some significant tax changes which may affect your tax considerations for the year ending 30 June 2019:
Basic Medicare Levy
A 2017 budget measure provides for an increase in the basic medicare levy by 0.5% – to 2.5% of taxable income.
The new medicare levy rate of 2.5% applies from after the end of the 2018-19 year, from 1 July 2019. However the Fringe Benefits Tax rate change (up 0.5% to 47.5%) will take effect from 1 April 2019.
In addition to increasing the medicare levy rate, the bills package also adjusts those tax rates (such as FBT, Family Trust Distribution Tax ) which are inclusive of the Medicare levy.
For details of the Bills package and their progress through parliament, see here
First home supersaver scheme: A 2017 budget measure introduced a scheme to encourage first home savings through superannuation contributions. Salary sacrifice for first home-owner savers super contributions made from 1 July 2017 can be withdrawn from 1 July 2018 for a first home deposit. See further: First Home Super Saver Scheme.
Home downsizing super contributions for 65 year olds: Downsizing contribution scheme for those aged 65 years and over introduced as part of the First home supersaver scheme legislation applies to home sale contracts exchanged from 1 July 2018. See Downsizing Home Super Contributions
In 2017, the small business instant asset write-off (up to $20,000) was extended for a further year and is due to expire on 30 June 2018 (unless further extended! – keep an eye out for updates here: Small businesses)
Foreign residents’ capital gains tax
The 2017 budget measure to deny access to foreign and temporary tax residents to the CGT main residence exemption from 7:30PM (AEST) on 9 May 2017 excludes properties held prior to this date until 30 June 2019.
GST on low value imported physical goods
The Government has passed legislation to reduce the current tax-free threshold on online sales of imported physical goods from $1,000 to zero. This measure will start on 1 July 2018. See further at GST matters
Taxable Payments Reporting for Cleaners and Couriers
The government intends to extend the Taxable Payments Reporting System (on a basis similar to that which currently exists for the building and construction industry) for payments made by businesses making payments to cleaners and couriers.
Under the draft proposals as they stand, the reporting obligation stems from the character of the payment, not based on the type of business conducted by the paying entity. And it is the whole payment which is reported, not just the labour component.
The arrangements are to start on 1 July 2018 with the first annual report due by 28 August 2019. Entities subject to the reporting requirements would be those which:
- make payments to cleaners and couriers; and
- have an ABN
This page was last modified 2017-12-15