Here are some of the measures that have come out of the Budget and how they impact individuals.
Low and middle-income earners – tax cuts
Bringing forward personal income tax cuts that have already been legislated for. Such cuts are a substitute for wage increases. The tax reduction increases the available cash in the hand of the household.
- This tax cut is a deduction against tax payable reducing the tax that is payable. It is available only to those that have taxable income and file tax returns and will not be refundable.
- With the filing of the 2018-19 tax return, single income families earning up to $126,000 will receive an immediate tax reduction of $1,080. For dual income families, this reduction will be $2,080. These cuts immediately increase available cash to the household. Over 4.5m personal taxpayers will enjoy the full benefit and another 5.5m will enjoy a progressively lower benefit.
- From 1 July 2024, for those earning between $45,000 – $200,000, the tax rate of 32.5% is reduced to 30%. This will mean that from that date, 94% of personal taxpayers will be on a tax rate of no more than 30%.
- From 2023-24 there will be four tax rates for all personal taxpayers:
| Taxable income | Tax rate |
| Up to $18,200 | Nil |
| $18,201 – $45,000 | 19% |
| $45,001 – $200,000 | 30% |
| $200,001 + | 45% |
- By 2024-25, 60% of all personal income tax will be paid by the top 20% of taxpayers.
Energy Assistance Payment to pensioners and those receiving support payments
- Before 30 June 2019, a one-off cash payment may be offered to pensioners and those receiving support payments to assist with the payment of energy accounts. Payments are to be $75 for singles and $125 for couples.
Read more in our complete April 2019 Taxwise Budget Newsletter here
