Low and middle income tax offset now law
In the 2019–20 Federal Budget the Government announced its intention to change and build on the Personal Income Tax Plan. These changes are now law.
From the 2018–19 income year:
The low and middle income tax offset increases from a maximum amount of $530 to $1,080 per annum and the base amount increases from $200 to $255 per annum.
Taxpayers with a taxable income:
- of $37,000 or below can now receive a low and middle income tax offset of up to $255
- above $37,000 and below $48,000 can now receive $255, plus an amount equal to 7.5% to the maximum offset of $1,080
- above $48,000 and below $90,000 are now eligible for the maximum low and middle income tax offset of $1,080
- above $90,000 but is no more than $126,000 are now eligible for a low and middle income tax offset of $1,080, less an amount equal to three per cent of the excess.
Ref: Australian Taxation Office Website – www.ato.gov.au
Southern Business Solutions are able to complete your tax return and advise you of the amount of tax offset you will be entitled to. Please call to make an appointment or if you have any question about your eligibility for this increased tax offset for the 2019 and future years.