Tax Breaks that may be available for the 2019 Tax Return: Law not yet passed

Tax Breaks that may be available for the 2019 Tax Return: Law not yet passed

TaxWise June 2019

Prior to the Election, the Coalition Government had proposed various tax measures. These have yet to be passed into law. We are not sure which will be passed into law or when.


If they are of interest discuss this with your adviser.


Still waiting for personal tax cuts…

Not yet law:

  • The tax offset that reduces the tax payable for low and middle- income earners. This becomes available when the 2019 tax return is filed with the ATO.
  • The marginal tax rate change for the 1 July 2019 – 30 June 2020 tax year. This will reduce the tax payable from 1 July 2019.

The new Coalition Government wants these and the proposed changes so that will result in a flatter tax rate structure by 2025, passed into law as quickly as possible. Labor has said it will support the 2019 and 2020 tax year changes but not those resulting in the flatter tax rate by 2025. We will wait and see.

Small tax discount rate to increase from 1 July 2020

For unincorporated businesses, the current small tax discount rate of 8% would increase to 13% for 1 July 2020 to 30 June 2021 and become 16% after 1 July 2021.

For companies with a turnover under $50m, a cut in corporate tax rate from 1 July 2021

It is proposed for companies with a total turnover of less than $50m that from 1 July 2021, the current company tax rate of 27.5% would be decreased to 25%.

Ref: TaxWise Business June 2019

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