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  • Tax changes for individuals

    The 2018–19 federal Budget introduced a number of new tax measures as part of the Personal Income Tax Plan. Your clients may need your help to understand how these measures affect them.

    The new measures include:

    • A new low and middle income tax offset to provide immediate tax relief of up to $530. This applies after your individual clients lodge their tax return for each income year from 2018–19 until 2021–22.
    • Increases to income tax rate thresholds over the next seven years. These will mean Australian individual taxpayers pay less tax. The first change took effect on 1 July 2018 and there will be future changes in 2022–23 and 2024–25, to ensure that more of your clients stay in the 32.5% tax bracket.
    • A reduction in the number of tax brackets in 2024–25, to simplify the tax system. We will move from five tax brackets to four.

    We understand the significant advisory role you play in your clients’ taxation affairs. We encourage you to let your clients know about the new tax measures applicable to them and their individual circumstances, prior to completing their tax returns.

    See also:

    Last modified: 18 Mar 2019QC 58262