Increased Income Tax Rate Thresholds
The 2018/19 tax year heralds the introduction of a number of new income tax thresholds for the 2018–19, 2022–23 and 2024–25 income years. These changes apply to residents, foreign-residents and working holiday makers.
The increased income tax thresholds are as follows:
For 2018–19, 2019–20, 2020–21 and 2021–22 income years there will be an increase to the top threshold of the 32.5% tax bracket, which will increase from $87,000 to $90,000.
For 2022–23 and 2023–24, the top threshold of:
- the 19% tax bracket will increase from $37,000 to $41,000
- the 32.5% bracket will increase from $90,000 to $120,000
For 2024–25 income year on wards, the top threshold of the 32.5% tax bracket will increase from $120,000 to $200,000.
If you have any questions or need advice and clarity specific to your business, feel free to contact Semmens & Co on 03 8320 0320 for a free consultation.