Just to clarify a few points re the proposed ( not yet legislated) Personal Tax cuts ( lets focus on the first round )
- Will not actually lower weekly tax ie you will not get more in each week’s pay packet
- The idea is to increase the “Lower Earners Tax Offset “ – this is only applied when you lodge your tax return
SO – if you qualify when you lodge your tax return in 2019 / 2020 the ATO applies an “extra credit “ so tax if everything else was equal
You would get a larger tax refund or be asked to pay less tax
Money $$ YES – but not so quickly
Personal Income Tax Plan Bill
On 9 May 2018 the Government introduced the Treasury Laws Amendment (Personal Income Tax Plan) Bill 2018.
The Bill introduces the personal tax measures announced in the 2018 Federal Budget which include:
- a Low and Middle Income Earners Tax Offset of up to $530 applying from 1 July 2018 to 30 June 2022
- an increase to the Low Income Tax Offset from 1 July 2022 from $445 to $645, and
- progressively increase the income tax thresholds in 2018/19, 2022/23 and 2024/25.
O & M Private Wealth