Archived July 2019 post. Thresholds and measures below reflect the 2018-19 tax year and have since changed – check current requirements each year. With tax season in full swing at the time, we compiled a few things worth being aware of.
Individuals: waiting for your payment summary? Check myGov
If you were waiting for your annual payment summary from your employer, the first thing to check was whether they reported through Single Touch Payroll (STP). If so, you needed to link your myGov account to the ATO to retrieve your income statement, which your employer would mark as ‘tax ready’ once finalised.
Student debt and travelling overseas
From 2019, more people needed to start repaying student debts (such as HELP, VSL or TSL) because the repayment income threshold was significantly lowered to $45,881. New rules also required Australians with student loans living or travelling overseas to notify the ATO of their address, lodge an overseas travel notification, and report their worldwide income above the relevant threshold. Expats could lodge through pmwPlus or through the ATO’s online services via myGov.
Personal income tax cuts
As well as the widely publicised tax offsets, individuals earning above $90,000 saved a further $135 in income tax that year, as the top of the 32.5% bracket moved from $87,000 to $90,000 (income in that band had previously been taxed at 37%).
Businesses: STP now in effect
From 1 July 2019, employers were required to electronically send all employees’ tax and superannuation information to the ATO each time there was a pay event. It was worth checking that income statements for the year correctly picked up reportable fringe benefits and reportable super.
Instant asset write-off increased and broadened
Legislation confirmed the small business instant asset write-off had increased from $20,000 to $30,000, with the end date extended to 30 June 2020. Medium-sized businesses (turnover $10m to under $50m) were also entitled to a $30,000 instant write-off until 30 June 2020, for assets purchased after 2 April 2019.
No deductions for cash-in-hand payments
The government announced a focus on businesses paying employees cash-in-hand, with new rules denying tax deductions for businesses that failed to meet their obligations to withhold or report PAYG or superannuation.