2019 Income Tax Offset Changes
In the 2019–20 Federal Budget the Government announced its plan to alter and build on the Personal Income Tax Plan. We can confirm these changes have passed Parliment and are now law.
As a result from the 2018–19 income year the following will occur:
1. 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.
2. Taxpayers with a taxable income of $37,000 or below can now receive a low and middle income tax offset of up to $255
3. 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
4. Above $48,000 and below $90,000 are now eligible for the maximum low and middle income tax offset of $1,080
5. 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.
Ultimately this change to the Personal Income Tax Regime will assist all taxpayers under $125,000 with a reduction in Income Tax Liability and thus most likely an additional income tax refundable amount. Any taxpayers over $126,000 will not be affected by these changes. Australian's are entitled to this offset automatically by lodging their 2019 Income Tax Returns.