New Financial Year = New Pay and Tax Rates
You may need a coffee for this ..
New minimum pay rates from
1 July 2018
The Fair Work Commission has increased the minimum wage by 3.5%. New award wages and allowances come into effect from 1 July 2018 which reflect increases. If you’re an employer, it’s important that you are aware of the new rates and apply them. The Fair Work Ombudsman’s online Pay Calculator can help you determine the right rates to apply and has the new awards available.
Some Penalty Rates are changing too
Sunday penalty rates in the following awards have changed:
Fast Food Industry Award 2010
General Retail Industry Award 2010
Hospitality Industry (General) Award 2010
Pharmacy Industry Award 2010
Personal income tax cuts
New personal income tax rates come into effect from 1 July 2018. The top threshold of the 32.5% personal income tax bracket will increase from $87,000 to $90,000. Dovetailing into the tax bracket change is the introduction of the Low and Middle Income Tax Offset for those with taxable incomes up to $125,333. The offset is a non-refundable tax offset that you receive when you lodge your income tax return.
If your annual taxable income is $80,000 in 2018-19, then the personal income tax changes provide an annual tax reduction of $530 per year. If your annual taxable income is $120,000, then the changes give you an annual reduction of $215.
If you need help with any of the above please do not hesitate to contact us.