2018/19 Key Tax Changes

Payment summary changes through Single Touch Payroll (STP) – If an employer reports through Single Touch Payroll they are not required to provide a payment summary to their employees.

Income statements will replace payment summaries. Employees can access their income statements through ATO online services via myGov, at any time. Employees will receive a notification from ATO in their myGov inbox when their income statement is ‘Tax Ready’, so they can complete their tax return. Employees will be able to contact the ATO for a copy of their income statement if they do not have access to myGov.

Low and Middle-Income Tax Offset – The Personal Income Tax Plan was announced in the 2018-19 Budget and delivers a new low and middle-income tax offset, changes to the existing low-income tax offset and various threshold changes over the next seven years. The changes are law and currently being implemented.

New scope – assuming 2019-20 budget changes are enacted

From 2018-19

New low and middle-income tax offset

Base rate: $225

Maximum rate: $1,080

Taper: $225 plus 7.5% for TI’s that exceed $37,000 and are not more than $48,000

Taper: $1,080 less 3% for TI’s that exceed $90,000

Increase top threshold 32.5% tax bracket to $90,000

Extending, increasing and expanding access to the instant asset write-off – The instant asset write-off threshold has increased to $30,000 for each asset from 2 April 2019 and the instant asset write-off has been extended to 30 June 2020.


From 12 May 2015 until 28 January 2019

You can immediately deduct the business portion of most depreciating assets costing less than $20,000 each (the instant asset write-off threshold)

From 29 January 2019 before 2 April 2019

You can immediately deduct the business portion of most depreciating assets costing less than $25,000 each (the instant asset write-off threshold)

From 2 April 2019 until 30 June 2020

You can immediately deduct the business portion of most depreciating assets costing less than $30,000 each (the instant asset write-off threshold)

Business with a turnover from $10million to less than $50million may be eligible for the instant asset write-off for assets purchased for less than $30,000 each from 2 April 2019 to 30 June 2020. For assets purchased for $30,000 or more, the general depreciation rules must be used.

GST on low value imported physical goods from 1 July 2018 – The Government has passed legislation to reduce the current tax-free threshold on online sales of imported physical goods from $1,000 to zero.

First home super saver scheme – If a taxpayer requested the release of an amount under the First home super saver (FHSS) scheme during the 2018-19 income year, they must include in their 2019 tax return:

· Any assessable FHSS amount

· The tax withheld amount.

They will receive a payment summary from ATO showing the assessable FHSS amount and tax withheld. If they requested a release during the 2018-19 income year, they must include the amount in their 2019 tax return, even if they did not receive the amount until after 30 June 2019.


Downsizer contributions into superannuation

The contributing the proceeds of downsizing to superannuation measure was one of several measures announced in the 2017-18 Budget as part of the Government’s package of reforms to reduce pressure on housing affordability.

Older Australians choosing to sell their home and downsize or move homes that no longer meet their needs are provided with the benefit of being able to contribute the proceeds from the sale of their home into superannuation.

Schedule 2 to the Bill allows an individual to use the proceeds in relation to one sale of their main residence to make contributions (downsizer contributions) of up to $300,000 to their superannuation provider if they are 65 years of age or over and meet all the eligibility requirements.

Downsizer contributions can be made regardless of the other contributions caps and restrictions that might apply when making voluntary contributions.

Super Changes not passed prior to the 2019 federal election

· 3-year Audit

The Government recognises that self-managed superannuation fund trustees appropriately face a number of regulatory requirements in administering their funds. However, the Government is committed to reducing red tapes and compliance burden for SMSF trustees.

Under this measure, audits conducted for SMSFs on a three-yearly audit cycle will cover all of the three preceding years, maintaining integrity within the SMSF sector. SMSFs that do not meet the eligibility criteria will not be eligible for a three-yearly audit cycle and will continue to be annually audited.

· Increase SMSF membership from 4 to 6

The Bill makes amendments to the Superannuation Industry Act 1993, ITAA 1997 and Superannuation (Unclaimed Money and Lost Members) Act to increase the maximum number of allowable members in SMSFs from 4 to 6.

It appears that the above changes may not go through in the future.