- The individual income tax rate thresholds will be progressively increased under a 7-year personal income tax plan beginning from 2018/19.
- A low and middle income tax offset is available for the 2018/19, 2019/20, 2020/21 and 2021/22 income years.
- Individuals with superannuation account balances of $500,000 or less can make “catch-up” superannuation contributions using their unused concessional contributions cap (for up to 5 years) from 1st July 2018.
- Individuals may withdraw capped voluntary contributions made under the First Home Super Saver Scheme (FHSSS) together with associated deemed earning for the purposes of purchasing their first home from 1 July 2018 (see our blog for more information).
- Individuals aged 65 years or more can make downsizer contributions of up to $300,000 into their superannuation using the proceeds from the sale of their main residence where sale contracts are exchanged on or after 1 July 2018 .
- Whistleblowers who disclose information to the ATO on tax avoidance behavior will be provided with protection from the 1 July 2018.
- The vehicle per klm rate increases from .66 to .68 cents in 2018/19.
Other Changes Affecting Individuals
- From 1 July 2018, purchases of certain new residential property and land must withhold an amount equivalent to the GST from the contract price – which is payable directly to the ATO.
- The ATO will apply penalty relief to inadvertent errors in tax returns and activity statements made by eligible tax payers that are due to failing to take reasonable care or taking a position on income tax that is not reasonably arguable from 1 July 2018.