In the 2019 Federal Budget, the government announced the following tax relief measures for low and middle-income earners and small businesses. 

Instant asset write-off

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.

Individual tax rates for 2018–2019

Threshold  Rate
$0 - $18,200 0%
$18,201 - $37,000 19.0%
$37,001 - $90,000 32.5%
$90,001 - $180,000 37.0%
$180,001 + 45.0%

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).

Low and middle income tax offset

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.