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Personal income tax changes to make life easier

Changes to the personal income tax system will make it more simple and transparent to use.

From July 1, the Government will serve tax cuts to low and middle-income individuals by increasing the tax-free threshold and modifying the initial two marginal tax rates over two phases.

The tax-free threshold will increase from $6000 to $18,200, with the maximum value of the low-income tax offset reduced from $1500 to $445.

The first marginal tax rate will be increased from 15  to 19 per cent and apply only to that part of taxable income which exceeds $18,200, but does not exceed $37,000.

The second marginal tax rate will increase from 30 to 32.5 per cent and apply to that part of taxable income which exceeds $37,000, but does not exceed $80,000.

Phase two of tax cuts will come into effect July 1, 2015.

Posted on 6 March '12 by , under Business.

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What to consider when consolidating your super

The ATO reported that 45% of working Australians were not aware that they had multiple super accounts in 2016. Having multiple super accounts is particularly common for individuals who have had more than one job. If this is you, it is important to identify and manage your super accounts because having more than one can be costly as a result of account fees from multiple funds.To combat this, you may want to consolidate your super, which moves all your super into one account. Not only does this save on fees, but it also makes your super easier to manage and keep track of.

Before consolidating your super, it is important to do the following:

Research your funds' policy
Compare your active super accounts so you can make the right choice about which one you should close. Things to assess include:

  • Exit fees
  • Insurance policies
  • Investment options
  • Ongoing service fees
  • Performance of the funds

Check employer contributions
Changing funds may affect how much your employer contributes, as some employers contribute more to certain funds. Check your current accounts to see if changing funds will affect this. Once you have selected a super fund, regardless of whether you choose a new super fund or one of your existing ones, provide your employer with the details they need to pay super into your selected account.

Gather the relevant information
When consolidating your super, you will need to have the following details ready:

  • Your tax file number.
  • Proof of identity. This could include your driver's license, birth certificate or passport.
  • Your fund's superannuation product identification number (SPIN).
  • Your fund's unique superannuation identifier (USI).
  • Details of your previous fund.

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