AUGUST 2019

Bhavesh Chaudhari

 

TAX RELIEF

In the 2019-20 Budget, the Government announced additional tax relief to ensure that hard-working Australians are rewarded for their effort.

From the 2018–19 income year:

Taxpayers with a taxable income:

  • of $37,000 or below can now receive a low- and middle-income tax offset of up to $255;
  • above $37,000 and below $48,000 can now receive $255, plus an amount equal to 7.5% to the maximum offset of $1,080;
  • above $48,000 and below $90,000 are now eligible for the maximum low- and middle-income tax offset of $1,080;
  • above $90,000 but is no more than $126,000 are now eligible for a low- and middle-income tax offset of $1,080, less an amount equal to three per cent of the excess.

SUPERANNUATION CHANGES

Fees charged on super accounts are capped starting 1st July 2019 for accounts having balance of less than $6,000.00 with no exit fees, allowing members to switch their superfunds without any financial loss if they choose to.

TAXI TRAVEL EXPENSES EXEMPTION

Any benefit arising from taxi travel by an employee is exempt from fringe benefits tax (FBT) if the travel is a single trip beginning or ending at the employee’s place of work.

this may be a consideration for employers who regularly provide taxi travel to staff.

FRINGE BENEFITS TAX (FBT) ISSUES ON THE ATO’S RADAR

The ATO have identified six items that specifically relate to fringe benefits tax (FBT). The information in newsletter may help you to avoid making costly mistakes.