Tax Rates 2019-2020 Year (Residents)
The 2019 financial year starts on 1 July 2019 and ends on 30 June 2020. 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. A proposed increase in the basic medicare levy has been abandoned – see notes below.
What’s new in 2019-20?
Basic Medicare Levy
Foreign residents’ capital gains tax – grandfathered properties come into the net
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.
Entitlement to the low and middle income tax offset
Announced in the budget measures on 9 May 2018 and included in the proposals for changes to the personal tax rates schedules is a new Low and Middle Income Tax Offset (LMITO) which will operate from 1 July 2018 until 30 June 2022 in addition to the existing Low Income Tax Offset (LITO). Under the proposals from 1 July 2022 a new low income offset of up to $645 will replace LITO and LMITO.
Expansion of taxable payment reporting systems (Budget 2018):
The taxable payments reporting systems are to be further expanded from 1 July 2019 to include:
- security providers and investigation services
- road freight transport
- computer system design and related services
The measures for the newly included industries will commence with effect from 1 July 2019, the first financial year report being due by 20 August 2020. Read more here – Taxable Payments Reporting.
Loss of business tax deductions for PAYG non-compliance (Budget 2018):
From 1 July 2019 businesses will no longer be able to claim deductions for wages payments where PAYG tax has not been withheld when it should have been.Likewise payments to contractors will not be deductible if the contractor does not provide an ABN and PAYG has not been withheld when it should have been.
Extending GST to offshore sellers of hotel accommodation in Australia (Budget 2018):
From 1 July 2019 offshore sellers of hotel accommodation in Australia will be required to calculate their GST turnover in the same way as localsellers. (Currently offshore sellers of Australian hotel accommodation are exempt from including sales of hotel accommodation in their GST turnover).
Sales that occur before 1 July 2019 will not be subject to the measure even if the stay at the hotel occurs after this date.
The unanimous agreement of the States and Territories will be required for the enactment of legislation. See GST matters.
SMSF annual audit moving to 3-yearly cycle
Business tax deductions limitation on non-compliant wages
For employer taxpayers – legislation has been drafted to limit tax deductions for certain payments for personal services – e.g. wages etc – for certain payments for personal services – e.g. wages etc – for which the withholding tax obligations have not been complied with.
The intended start date is 1 July 2019. Read more here.
This page was last modified 2018-07-23