Australians will look at a raft of changes as we enter a new financial year on Monday, July 1.
The new set of changes will affect almost everyone including individuals, families, workers, business owners and even retirees.
Here is a list of things that will affect the way your finances, involving your taxes, super and wages.
Child care subsidy rates
Combined annual family income is one of the parameters that determine the amount of Child Care Subsidy a family is entitled to.
From July 1, the subsidy will be contributed based on a family's combined income with the following thresholds:
- Up to $68,163 — 85 per cent
- More than $68,163 to $173,163 — down to 50 per cent
- $173,163 to $252,453 — reducing to 50 per cent
- $252,453 to $342,453 — reducing to 20 per cent
- $342,453 to $352,453 — 20 per cent
- $352,453 or more — 0 per cent
Use the to find out what your family may be entitled to.
Income tax relief for low and middle-income earners
Source: Getty Images/Ariel Skelley
As part of the Federal Budget 2019-20, the Government has proposed a new set of changes, which if passed will give the taxpayers including individuals and families some extra money in their pockets.
- The low and middle-income earners will see a reduced tax amount up to $1,080 per annum.
- Taxpayers with a taxable income of less than $37,000 will receive a benefit up to $255.
- If the taxable income is between $37,000 and $48,000 you are entitled to receive $255, plus an amount equal to 7.5 per cent to the maximum offset of up to $1,080.
- Taxpayers with a taxable income between $48,000 and $90,000 will now be eligible for the tax offset of $1,080.
The Australian Taxation Office said they will retrospectively implement these tax cuts if the parliament passes the proposed changes to the legislation.
Family tax benefits for high-income earners
From 1 July 2019, there will be changes to the Family Tax Benefit for high-income earners. The threshold is set to increase from $94,316 to $98,988. The families above this tax bracket will see a reduced benefit by 30 per cent for every dollar they earn over $98,988.
The way you lodge your tax return
End of financial year means lots of economic and tax decisions come to effect. Source: Getty Images
The Australian Taxation Office (ATO) has also announced a couple of changes in managing your tax and super details this financial year.
From now on you may not receive your payment summary from your employer. This is because of the way employers report tax and super information to the ATO is changing.
You will now see this information by logging into myGov and accessing ATO online services. If you use a tax agent they will have this information and will be able to use it to pre-fill your tax return.
Also, health insurers are no longer required to send you a private health insurance statement. This information should be available in ATO online services by 20 July.
From 1 July 2019, you can only claim deductions for payments you make to your workers, such as employees or contractors, where you have complied with the pay as you go withholding and reporting obligations for that payment.
Tax changes for Small Businesses
Tax Time - Australia Source: Getty Images
From July 1, the businesses with staff numbers less than 20 are advised to switch to an online payroll system called ‘Single Touch Payroll’.
The ATO describes it as the ‘biggest change since the GST’. The new system also tracks superannuation payments, so those businesses that aren’t paying super or are paying wages in an unusual way will be very visible to the Tax Office.
Businesses with more than 20 staff switched to Single Touch Payroll last year, so this tax time, up to nine million employees will report without payment summaries, using the information available online at MyGov online portal.
The ATO said they’re trying to help small businesses get into the new system as soon as possible.
Write-off threshold increased for small businesses
Shoppers are seen at a produce market in Brisbane, Wednesday, July 17, 2013. (AAP Image/Dave Hunt) NO ARCHIVING Source: (AAP Image/Dave Hunt)
Small businesses can now claim a deduction for the business expenses that costs less than $30,000. The previous write-off value was $25,000 which was increased earlier this year.
An increased write-off expense may be a great way to have a new car or any other business needs.
The businesses with a turnover from $10 million to less than $50 million can benefit from this government lift up.
Minimum wage increase
The national minimum wages will be increased by 3 per cent from the first full pay period on or after 1 July 2019. The current weekly minimum wage will increase from $719.20 to $740.78 on the basis of 38 ordinary hours per week. The decision affects close to 2.2 million or 21 per cent of Australian employees.
Superannuation Source: Getty Images
Superannuation changes
On 1 July 2019, the Government’s Protecting Your Super package introduces new laws designed to protect members from paying unnecessary fees and insurance premiums.
‘Inactive’ super accounts, or those super accounts that have received no contributions for 16 months or more, might lose their default insurance cover from July 1.
More than three million Australians may be affected as part of these changes, according to the Association of Superannuation Funds of Australia (ASFA).
But there are concerns that people holding these accounts could potentially lose their life insurance, and total or permanent disability funds unless they contact their super fund.
To check whether these changes affect you or not, you may .
Identification requirements for aviation
Source: AAP
From 1 July 2019, there’ll be changes to proof of identity requirements for aviation reference number (ARN) applications. The changes remove the 100 point identification requirements for online ARN applications. Instead, applicants will now only need to use one of the following:
- Australian passport
- Australian birth certificate
- Australian citizenship certificate
- ImmiCard
- Foreign passport
According to the , the applicants who want to use a foreign passport will need to be in Australia at the time they lodge their ARN application unless they are a permanent resident. Otherwise, they will need to provide a certified copy of their passport.
