What’s changed for this EOFY?

It’s already been a big year so far this 2019, and with EOFY fast approaching, with all that’s happened in the news it can be easy to lose track of where we’re at come tax time. Particularly for individuals and small business owners, we need to know exactly what to expect when you lodge your tax return, and what you need to bring to your accountant to make the process as efficient as possible.

Changes for individuals

One of the leading incentives in the 2018-19 Federal Budget was the new tax measure as a part of the Personal Income Tax plan. This means low and middle-income bracket individuals can benefit from immediate tax relief of up to $530 this year and up until EOFY21-22. Another leading incentive was the increase in income tax rate thresholds, which means Australian individuals will be paying less tax and will stay under the 32.5% bracket.

Income statements are now replacing payment summaries. Primarily, if your employer reports through a Single Touch Payroll, they are no longer required to supply payment summaries to their employees. Instead, employees can now access their income statements through the ATO’s online services. Unsure of what this means? Feel free to talk to your employer or the ATO for further clarification.

Changes for small to medium business owners

The biggest change for business owners is the increase in the instant asset write-off from $25k to $30k. Don’t know what this is? We’ve written an article on it! You can find it here (link to IAWO article).

There’s also been a change in the company tax rate assessments for businesses that have an annual turnover of less than $50million. Any business that falls in this bracket will move to a 25% tax rate by the financial year 2021-22. Additionally, there’s also been an increase in the tax discount rate for small businesses with a turnover of less than $5million per annum.

Not sure how any of this might affect you? For more information head to the ATO website here, or talk to your accountant or taxation specialist on the changes that may apply to you.

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