Following the end of the 17-18 tax year, there are set to be a number of changes that are due to come into force on 1st July 2018. In this post, we focus on the changes that will occur for individual personal tax income purposes.
What will change in Personal Income Tax Laws and Levels in 2018?
As of 1st July 2018, the personal tax bracket will be changing. At present, the personal income tax bracket is set at $87,000. However, the new top threshold of the 32.5% personal income tax bracket will be raised to $90,000.
- There will be a new low- and middle-income tax offset that is being introduced with a view to providing a tax offset to those individuals who have a taxable income value of anything up to $125,333.
- The GST on residential subdivisions and property developments is changing too. The method used by the GST for collections on any sales of a new subdivision or newly built residential properties will be amended from 1st July 2018 as well. Any purchase will now be asked to remit the GST straight to the ATO, as part of a settlement process.
- So, if you are planning on purchasing a property, then you will need to make sure you check all the details to ensure the management is being handled correctly.
If you have a business in Australia, and you want to understand what is changing come 1st July 2018; then this article released the GHT Group provides you with further details of the changes to business taxation rules.