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 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 modified rates are reflected in the table below (32.5% ceiling lifted from $87,000 to $90,000) and apply for the 4 years from 1 July 2018 to 30 June 2022.

Tax scale 2019-20

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

 

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?

8 May 2018: see budget 2018 update for further measures

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.

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 system has been extended 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 28 August 2020. Read more here – Taxable Payments Reporting.

Loss of business tax deductions for PAYG non-compliance  (Budget 2018):

For employer taxpayers – legislation has been approved 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 start date is 1 July 2019.  Read more here.

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 local sellers. (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

A 2018 budget measure will change the annual requirement to 3-yearly from 1 July 2019 for SMSFs deemed to have a good compliance record. See SMSF Audits.

 

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This page was last modified 2018-11-26