Tax Return time has come for 2019, and ANG Partners has summarized a few key things you need to know!
Changes in Personal Income Tax Rate in 2019 Income Year:
Top threshold of 32.5% personal income bracket has been INCREASED from $87,000 to $90,000 for resident Individuals, non-resident individuals and Working Holiday Makers.
Personal Income Tax Rates for residents is illustrated as the following table:
| Rate% | Taxable Income | Tax (AUD) |
| 0 | 0 – $18,200 | Nil |
| 19 | $18,201 – $37,000 | To 3,572 |
| 32.5 | $37,001 – $90,000 | To 20,797 |
| 37 | $90,001 – $180,000 | To 54,097 |
| 45 | $180,001+ | 54,097+ |
Personal Income Tax Rates for non-resident individuals:
| Rate% | Taxable Income | Tax (AUD) |
| 32.5 | 0 – $90,000 | To 29,250 |
| 37 | $90,001 – $180,000 | To 62,550 |
| 45 | $180,001+ | 62,550+ |
Personal Income Tax Rates for working holiday makers:
| Rate% | Taxable Income | Tax (AUD) |
| 15 | 0 – $37,000 | To 5,550 |
| 32.5 | $37,001 – $90,000 | To 22,775 |
| 37 | $90,001 – $180,000 | To 56,075 |
| 45 | $180,001+ | 56,075+ |
The Low and Middle Income Tax Offset (‘LAMITO’):
Australian resident individuals with taxable income not exceeding $125,333, are now entitled to claim a new tax offset which is up to $530 per income year, in addition to the existing Low Income Tax Offset (‘LITO’, up to $445 per income year).
Along with existing LITO, the new LAMITO increases the effective tax-free threshold to $21,595 in 2019 income year.
The following table demonstrate how LAMITO and LITO are calculated:
| Taxable Income | LAMITO Tax Offset | LITO Tax Offset |
| $0 – $37,000 | $200 | $445 |
| $37,001 – $48,000 | $200 + 3% of excess taxable income over $37,000 | $445 – 1.5% of excess taxable income over $37,000 |
| $48,001 – $66,666 | $530 | $445 – 1.5% of excess taxable income over $37,000 |
| $66,667 – $90,000 | $530 | N/A |
| $90,001 – $125,333 | $530 – 1.5% of excess taxable income over $90,000 | N/A |
| $125,334+ | N/A | N/A |
Small Business Income Tax Offset(‘SBITO’)
According to the Treasury Laws Amendment (Enterprise Tax Plan) Act 2017, in 2019 income year, eligible individuals* can claim the tax discount as 8% of their tax liability attributable to their total net small business income, capped at $1,000.
*An eligible individual for the 2019 income years is either a Small Business Entity(‘SBE’) sole trader or a partner of an SBE partnership or a beneficiary of an SBE trust.
For more information please contact ANG Partners
Call our Income Tax Professionals: Danny or Austin
Tel: 03 9995 7261
