Australian Tax Rates for 2019!

tax rates 2019

You might be wondering how your taxes will be affected next year.

The marginal tax rates have been changed for 2019 and is subject to change until 2024. Not only will we be showing you how the tax rates for 2019 changes, but we’ll show you how the future tax rates will look like.

Keep reading for more information.

Tax Rates for 2019

As you know, the first $18,200 of your income is tax-free. Below, you will find the tax rates for the 2018/2019 financial year. 

2018/2019 Financial Year IncomeTax RateTax payable
0 - $18,2000%None
$18,201 - $37,00019%19 cents per every $1 over $18,200
$37,001 -$90,00032.5%$3,572 plus 32.5 cents per dollar over $37,000
$90,001 - $180,00037%$20,797 plus 37 cents per dollar over $90,000
$180,000 and up45%$54,097 plus 45 cents per dollar over $180,000

Compare the 2019 tax rates to the 2017/2018 financial year below.

2017/2018 Financial Year Taxable IncomeYour Tax
0 – $18,200Tax-free
$18,201 – $37,00019c for each $1 over $18,200
$37,001 – $87,000$3,572 + 32.5c for each $1 over $37,000
$87,001 – $180,000$19,822 + 37c for each $1 over $87,000
$180,001 and over$54,232 + 45c for each $1 over $180,000

As shown by the tables above for both tax years, the threshold for 32.5% tax bracket increases from $87,000 to $90,000 for 2019. This means more than just a difference of $3,000 of income. Instead, eligible Australians will pay $975 (32.5% tax), instead of paying $1,110 (37% tax). As a result, they will be saving $135 in taxes.

Foreign resident tax rates:

  • $0 – $90,000 → 32.5c for each $1
  • $90,0001 – $180,000 → $29,250 plus 37c for each $1 over $90,000
  • $180,001 and up → $62,550 plus 45c for each $1 over $180,000

 

Working holiday maker tax rates:

  • $0 – $37,000 → 15c for each $1
  • $37,001 – $90,000 → $5,550 plus 32.5c for each $1 over $37,000
  • $90,001 – $180,000 → $22,775 plus 37c for each $1 over $90,000
  • $180,001 and over → $56,075 plus 45c for each $1 over $180,000

 

A new tax offset was introduced.

From 1 July 2018 until 30 June 2022, the Low and Middle Income Earners Tax Offset (LAMITO) was introduced by the federal government. This tax offset allows Australians with a taxable income of less than $125,333 to receive tax relief of up to $530 a year. It is calculated in addition to the Low Income Tax Offset (LITO) for only 4 years.

The LAMITO will be calculated and applied by the ATO after you lodge your return. Therefore, those who are eligible will receive a lump sum on assessment by the ATO.

The tax brackets will change

In comparison to the increase of the 32.5% tax bracket, the 19% tax bracket will also be changed in the future. The government plans on increasing the 19% tax bracket by 1 July 2022 from $37,000 to $41,000. Consequently, the LITO will increase from $445 to $645.

The government also plans on increasing the 45% tax rate from $180,000 and up to $200,000 and up starting 1 July 2024.

Here are what the future tax brackets will look like

The big difference that you might notice is that the 37% tax bracket disappears.

Tax RateIncome Range
From 1 July 2022
Income Range
From 1 July 2024
0%$0 - $18,200$0 - $18,200
19%$18,201 – $41,000$18,201 – $41,000
32.5%$41,001 – $120,000$41,001 – $200,000
37%$120,001 – $180,000Eliminated
45%Over $180,000Over $200,000

Ultimately, instead of 5 tax brackets, there will be 4 tax brackets.

Did you forget to lodge a few tax returns?

Even if you didn’t lodge your tax return for 2017-2018, you can easily finish your tax return by clicking here. All you need to do is create your account, enter your tax information, submit your account and lodge! Don’t wait.

LODGE ONLINE

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