With the government promising to legislate the tax cuts before the end of this financial year, our local CLY Tax Agent Ringwood understands that many people are still not sure as to how and when they will be personally affected.
From the past few weeks news, ATO were still committed to process the government’s promised tax cuts so that taxpayers will not need to lodge amendments in future if they miss the tax cut whening lodging 2019 Tax Return. Both the Labor and Liberal parties have supported giving low and middle-income earners a tax rebate of $1,080. However, Labor is not supportive to those stages of the tax cuts to be implemented from 2024 including the flat 30 per cent tax bracket for income earners between $45,001 and $200,000, but minister Scott Morrison has given the assurance that many Australians will be recipients of the tax relief outlined in the budget. The ATO has recently stated that it will be able to administer current laws as they stand. But once legislation has been passed, the increased LMITO payments will be implemented and taxpayers will not need to seek amendments. As it states the timing of the passing of legislation will determine whether it will be done in the normal way through assessments (if the legislation passes before 1 July 2019), or if the ATO will automatically amend assessments so that there will be no requirement for the taxpayer to lodge another tax return or seek an amendment (if the legislation passes on or after July 1 2019).
Some proposed tax relief from the Budget 2019-2020, that we received lots of tax Ringwood enquires, include:
- Immediate tax relief of up to $1,080 for singles or up to $2,160 for dual income families, which would bring benefits to many low- and middle-income earners.
- Increasing the current instant asset write-off threshold from 25,000 to $30,000 until 30/06/2020. The write-off will also be available to medium?sized businesses with less that $50 million annual turnover
It is imperative to our CLY Tax Accountants Ringwood that our clients understand the array of tax implications, and how that would impact their own personal tax return or business capacities. No matter whether you are a hard-working employee or small business owner, if you have any question about tax understanding or tax planning, please contact your local CLY Tax Agent Ringwood. We are professional tax specialist serving Ringwood and surrounding suburbs for many years and always happy to assist you with all your tax and accounting needs.