Tax Checklist and Update

Tax Return Checklist
With the end of financial year upon us, we thought you may benefit from an income tax return checklist to help you get organised for lodgement: Click here to download

Tax Rates
The media has been heavy with talk of tax rates changing, corporate rates changing and being wound back. The next election is pitched to be about tax breaks, rates and funding services. In the meantime however … how much more can you expect in your pay packet due to the adjustments and changes recently legislated, commencing 1/7/2018?

The key change is to rates in the 3rd Bracket from $87,000 currently to $90,000:

Plus Medicare Levy of 2% applies (not applicable to low income earners).

Plus Medicare Levy of 2% applies (not applicable to low income earners).

Boost to low income earners
A new tax offset called ‘LIMTO’ or Low and Middle Income Tax Offset, is designed as a temporary 4 year offset (18/19, 19/20, 20/21, 21/22). The LIMTO in combination with the existing LITO is designed to:

  • give a higher tax refund to low and middle income earners upon completing their tax returns, and
  • avoid higher income earners benefiting – the alternative would be to make a tax rate change to a lower bracket. But this would be passed on to all tax-payers and thus be more expensive to the government coffers.
Low and middle income tax offset table.png

Of course, if you are over 60 years of age and deriving income from superannuation pensions, your pension continues to be tax free.

A reminder imputation credits for the time being are still available.