In the 2019 Federal Budget, the government announced the following tax relief measures for low and middle-income earners and small businesses.
There are a number of changes to the instant asset write-off, to both the maximum asset value that qualifies for the immediate write off and to the turnover threshold for qualifying taxpayers.
From 1 July 2018, small businesses with a turnover less than $10 million can write off assets costing less than $20,000. From 29 January 2019, small businesses with a turnover less than $10 million can write off assets costing less than $25,000. From 2 April 2019 (7.30pm), small businesses with a turnover less than $50 million can write off assets costing less than $30,000 (to 30 June 2020).
The increase of the turnover threshold to $50 million greatly expands the number of taxpayers who will be eligible for the instant asset write off. If a taxpayer needs to acquire an item of plant, car or other depreciable asset for less than $30,000, they should look at acquiring it and installing it ready for use before 30 June to claim the instant asset write off in the current year.
|$0 - $18,200
|$18,201 - $37,000
|$37,001 - $90,000
|$90,001 - $180,000
In addition, the Medicare levy is 2% of taxable income. Therefore, the top marginal tax rate for resident individuals will be 47% (including Medicare levy).
A new low and middle income tax offset (LMITO) will also be available, providing a benefit of up to $255 for individuals earning under $37,000 and up to $1,080 for individuals earning between $48,000 and $90,000. The offset reduces by 3 cents for every dollar in excess of $90,000. There is no offset for taxpayers earning in excess of $126,000.