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.

Tax scale 2018-19

The 2018 Budget announced a number of adjustments to the personal tax rates taking effect in the tax years from 1 July 2018 through to 1 July 2024. The legislation is here.

The scale changes applicable to the 2018-19 year have been reflected in the above table, which will apply for 4 tax years 2018-19, 2019-20, 2020-21 and 2021-22.

From 2018-19 the 32.5% ceiling has been lifted from $87,000 to $90,000.

Taxable IncomeTax On This Income
 0 to $18,200 Nil
 $18,201 to $37,000 19c for each $1 over $18,200
 $37,001 to $90,000 $3,572 plus 32.5c for each $1 over $37,000
 $90,001 to $180,000 $20,797 plus 37c for each $1 over $90,000
 $180,001 and over $54,097 plus 45c for each $1 over $180,000

>> Free Tax Calculator spreadsheet here <<

Medicare

The above tables do not include Medicare Levy or the effect of any Low Income Tax Offset (“LITO”) or the proposed new Low and Middles Income Tax Offset (see below). 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 else is new in 2018-19?

Here’s some of the more significant tax changes which may affect your tax considerations for the year ending 30 June 2019:

8 May 2018: see budget 2018 update for further measures

Low and Middle Income Tax Offset

The LMITO of up to $530 is to apply from 1 July 2018 until 30 June 2022 and is in addition to the Low Income Tax Offset (LITO).

The offset will be applied on an annual basis as part of the annual income tax assessment.

The offset will apply as follows:

IncomeOffset
up to $37,000$200
$37,001 to $48,000$200 plus 3 cents for each dollar over $37,000
$48,001 to $90,000$530
$90,001 to $125,333$530 less 1.5 cents for each dollar over $90,000

Basic Medicare Levy

A 2017 budget measure providing for an increase in the basic medicare levy by 0.5% – to 2.5% of taxable income to apply from 1 July 2019 has been abandoned by the government.

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

Small business

In 2017, the small business instant asset write-off (up to $20,000) was extended for a further year to 30 June 2018 and has since been further extended for a further 12 months until 30 June 2019 for businesses with aggregated annual turnover less than $10 million. (Budget 2018)

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.

The arrangements 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

See information and links here.

Inadvertent super cap breaches  (Budget 2018)

Eligible individuals are to able to choose to nominate their wages from certain employers to not be subject to the superannuation guarantee from 1 July 2018.

At least one SG employer will need to be retained.

Individuals with more than one employer who expect their income for SG purposes will exceed $263,157 for the financial year will be able to apply for an exemption certificate to release some of their employers from their SG obligations.

To follow progress of this measure through parliament see Treasury Laws Amendment (2018 Superannuation Measures No. 1) Bill 2018

Further information here.

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This page was last modified 2018-06-21