Taxation bracket information that will affect all individual taxpayers in the future, by our business accountants in Melbourne
For the next 6 years, there are a few changes to the taxation brackets that our business accountants in Melbourne want you to be aware of. These changes are classified in three phases and are detailed below.
Phase one will commence in July 2018 and our small business accountants in Melbourne suggest it is directed towards low-middle income earners. This is because a four-year low and middle income tax offset is being introduced, to be received by taxpayers at the end of the year as part of their refund. The only change in the bracket is a $3000 increase in the threshold for the 37% threshold to $90 000.
Phase two on the other hand will benefit upper-middle and high earners. Enforced throughout our business accounting in Melbourne in 2022, the threshold for the 32.5% tax bracket will be lifted to $41 000 and the threshold for the 37 per cent bracket will go from $90 000 to $120 000.
Phase three will be the biggest change to the current system and only benefits upper-middle and high earners. Starting in July 2024, the 37% tax bracket will be removed, creating a massive middle tax bracket of 32.5% for income between $41 000 to $200 000. A 45% tax bracket will kick in to those earning $200 000 or more.
For more information regarding the taxation brackets, please contact our business accountants in Melbourne today.