Tax Changes 2018: What do they mean for you & other Australians?
A raft of tax changes for 2018 came into effect on 1st July. Here is just a few.
Key tax changes for Australians in 2018
- Personal tax bracket changes
The top threshold of the 32.5% personal income tax bracket will increase from $87,000 to $90,000*.
Introduction of the low and middle income tax offset*
This will provide a tax offset for those with taxable income of up to $125,333.
- GST on property developments and residential subdivisions
Purchasers are now required to remit the GST directly to the ATO as part of the settlement process.
Key tax changes in 2018 for Australian businesses
- Employers with 20 or more employees (at 1st April 2018) must use standard business reporting-enabled software from 1st July 2018 to report payments such as salaries and wages, PAYG withholding and superannuation.
- Single touch payroll is expected to be compulsory for businesses with 19 or less employees from 1st July 2019.
- The $20k instant asset write – off for small businesses has been extended until 30th June 2019.
- GST now applies to overseas sales of goods supplied to Australian consumers with a value under $1,000.
Key tax changes in 2018 for superannuation
- Downsizer contributions
If you are over 65, have held your home for 10 years or more, and are looking to sell, you might be able to contribute some of the proceeds of the sale of your home to superannuation.
- First home saver scheme
First home savers are able to withdraw voluntary, after-tax superannuation contributions that they have made to put towards their first home.
Get help to understand how the 2018 tax changes affect you…
Please do not hesitate to contact Katrina Brennan on (07) 5428 9555 and we can point you in the right direction.