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 2019 Budget proposed measures contained an increase in the Low and Middle Income Tax Offset- see details below.
The scale changes applicable to the 2018-19 year have been reflected in the table below.
From 2018-19 the 32.5% ceiling has been lifted from $87,000 to $90,000.
|Taxable Income||Tax 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 (2019 updated) <<
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?
A list of updated tax forms for the 2019 financial year is here: Tax Return Forms 2019
Here’s some of the more significant tax changes which may affect your tax considerations for the year ending 30 June 2019:
See Budgets 2018 and 2019 for outlines for further measures. See also: Coalition and Labor income tax plans compared as federal election looms
A Budget 2019 announced measure increases the LMITO values from the 2018-19 year through to 2021-22 as set out below. The LMITO base amount will increase from $200 to $255; the maximum amount will increase from $530 to $1080. Revised income tests also apply.
LMITO 2018-19 to 2021-22 (legislation passed 4 July 2019)
Note for 2019 tax returns: The Tax Office has indicated that 2018-19 income tax assessments for returns lodged before the new law was approved will have the additional refunds calculated and paid into taxpayer’s bank accounts without any requirement to request an amendment.
|up to $37,000||$255|
|$37,001 to $48,000||$255 plus 7.5 cents for each dollar over $37,000|
|$48,001 to $90,000||$1,080|
|$90,001 to $126,000||$1,080 less 3 cents for each dollar over $90,000|
The LMITO is paid in arrears by inclusion in the tax assessment upon tax return lodgement after the end of the financial year.
Basic Medicare Levy
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
The Government earlier this year (2019) announced that from 29 January 2019 the small business (turnover up to $10 million) instant asset deduction limit is to be increased from $20,000 to $25,000 and availability extended until 30 June 2020.
Announced in the 2019 Budget – from 7:30 PM (AEDT) on 2 April 2019 (Budget night) until 30 June 2020:
- The small business (turnover up to $10 million) write-off limit is increased from $25,000 to $30,000, applied on a per asset basis.
- Medium sized businesses (turnover from $10 million to $50 million) will now also have access to the instant asset write off in respect of assets acquired from Budget night to 30 June 2020.
- (As before) the small business pooling (simplified depreciation) rules and suspension of the lockout rules continue until 30 June 2020.
The Treasury Laws Amendment (Increasing and Extending the Instant Asset Write-Off) Bill 2019 has been approved by the parliament.
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
This page was last modified 2019-07-04