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2019 Budget – what it means for individuals

2019 budget explained for individuals

The 2019-2020 Federal Budget was announced on 2 April 2019 but what do all the words and details actually mean for individuals. We are trying to keep it simple so, here are the main points.

If you have questions and specific circumstances you need to discuss, please contact the CVW Accounting team. We are happy to help.


Tax relief for low and middle income earners

The low and middle income tax offset (LMITO) has increased. For individuals or singles the LMITO will increase from a maximum amount of $530 to $1,080 per annum. This is relevant for taxpayers earning more than $48,000 but no more than $90,000.

For dual income families the LMITO is proposed the increase to $2,160 will benefit from tax relief.

The LMITO tax offset will be available for the 2018-19, 2019-20, 2020-21 and 2021-22 income years.

The offset is received as a lump sum after individuals lodge their tax returns.

Individual’s tax rates and thresholds

Rate 2018-19 2022-23 2024-25
0% $0 – $18,200 $0 – $18,200 $0 – $18,200
19% $18,201 – $37,000 $18,201 – $45,000 $18,201 – $45,000
30% N/A N/A $45,001 – $200,000
32.5% $37,001 – $90,000 $45,001 – $120,000 N/A
37% $90,001 – $180,000 $120,001 – $180,000 N/A
45% $180,001+ $180,001+ $200,001+
LITO Up to $445 Up to $700 Up to $700
LMITO Up to $1,080


One-off energy assistance payments for individuals

From 2 April 2019, the Government will honour its commitment make a one-off payment to individuals to assist with paying energy bills. The tax-exempt payment will be $75 for singles and $62.50 for each member of a couple.

Payments will be made to Australian residents eligible for the following qualifying payments;

  • Age Pension,
  • Carer Payment,
  • Disability Support Pension,
  • Parenting Payment Single,
  • Veterans’ Service Pension and the Veterans’ Income Support Supplement,
  • Veterans’ disability payments,
  • War Widow(er)s Pension,
  • Permanent impairment payments under the Military Rehabilitation and Compensation Act 2004 (including dependent partners) and the Safety, Rehabilitation and Compensation Act 1988


Medicare levy thresholds to increase

The Medicare levy low income thresholds for singles, families, and seniors and pensioners is set to increase from the 2018-19 income year.

Thresholds Current Proposed
Singles $21,980 $22,398
Family $37,089 $37,794
Single seniors and pensioners $34,758 $35,418
Family seniors and pensioners $48,385 $49,304
Dependent child or student $3,406 $3,471


Superannuation contribution changes

From 1 July 2020, individuals aged 65 and 66 will be able to make voluntary superannuation contributions (concessional and non-concessional) without meeting the Work Test. This means the current Work Test system of only being able to make voluntary contribution if you have worked a minimum of 40 hours over a 30-day period will cease.

Plus, if you are aged 65 and 66 years of age you will be able to make up to three years of non-concessional contributions under the bring-forward rule.

Another change is the age limit for spouse contributions which will be increased from 69 to 74 years.

If you have questions about your current and/or superannuation contributions touch base with us at CVW Accounting today. Our experienced team of accountants have the relevant, up-to-date software to manage SMSF and the continuing legislation changes that occur.


High Income Earners

High net wealth individuals will face greater scrutiny with increased funding to the Tax Avoidance Taxforce. Over the next 4 years, $1 billion of funding is set to be allocated to focus on;

  • tax advisors that promote tax avoidance strategies
  • tax compliance activities of high wealth individuals, trusts, large public and private groups and multinationals


Do you have questions? Drop in for a cuppa at CVW Accounting – we’re happy to help.


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