# 2018-19 Budget: proposed changes to income tax rates, thresholds and offsets



## Jack Malarkey (Jan 11, 2016)

Treasurer Scott Morrison has foreshadowed the following Budget measures, all of which need to be legislated:


The Government will introduce the Low and Middle Income Tax Offset, a non-refundable tax offset of up to $530 per annum. The offset will be available from the 2018-19 year to 2021- 22. The offset will provide benefit of up to $200 for those earning up to $37,000 of taxable income. Between $37,000 to $48,000 the value of the offset will increase at a rate of three cents per dollar to the maximum benefit of $530. Those with incomes between $48,000 to $90,000 will be eligible for the full benefit. From $90,001 to $125,333 the offset will phase out at a rate of 1.5 cents per dollar.

● From 1 July 2018 the top threshold of the 32.5 per cent personal income bracket will increase from $87,000 to $90,000.

● From 1 July 2022, the Government will increase the Low Income Tax Offset from $445 to $645 and extend the 19 per cent personal income tax bracket from $37,000 to $41,000. The Low Income Tax Offset will be withdrawn at a rate of 6.5 cents per dollar between $37,000 and $41,000, and at a rate of 1.5 cents per dollar between incomes of $41,000 and $66,667.

● The Government will increase the top threshold of the 32.5 per cent personal income tax bracket from $90,000 to $120,000 from 1 July 2022.

● From 1 July 2024 the Government will extend the top threshold of the 32.5 per cent personal income tax bracket from $120,000 to $200,000 and remove the 37 per cent bracket.

(http://sjm.ministers.treasury.gov.au/media-release/045-2018/)


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## Banker Pete (Jan 16, 2017)

Eligibility for the Pension Work Bonus with be extended to include the self employed [us Uber drivers] Employment income up to $300 per fortnight ($7800 pa) will not affect your pension entitlement.


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## Jack Malarkey (Jan 11, 2016)

Banker Pete said:


> Eligibility for the Pension Work Bonus with be extended to include the self employed [us Uber drivers] Employment income up to $300 per fortnight ($7800 pa) will not affect your pension entitlement.


Thanks, Banker Pete. I wonder if those income thresholds take into account business expenses such as the Uber service fee and fuel.


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## Banker Pete (Jan 16, 2017)

I provided Centrelink with a copy of my tax return and they allowed all my expenses including Uber service fees & fuel. They will not allow donations however.
The work bonus has not previously been available to self employed persons so I am now rejoicing!


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## Sydney Uber (Apr 15, 2014)

Jack Malarkey said:


> Thanks, Banker Pete. I wonder if those income thresholds take into account business expenses such as the Uber service fee and fuel.


You're a Sub-contractor / small business operator. Keep EVERY receipt and expense to offset your earnings.

That water you buy for riders, mints, magazines, hand sanitiser, chuck bags and ANYTHING that a rider can consume (whether they or you do the consuming) is a business expense.

Get really creative as to what your car needs and keep the receipts.

Every UBER fee is an expense on the gross fee.

Buy some clothes and embroider the word "UBER" or "P2P Driver" or "Jack's Magic Carpet Rides" then ALL those costs PLUS laundry is a expense.

It is the ONLY way to make this gig really work for you.


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## acme (Dec 7, 2016)

I wouldn't count my chickens just yet, would not surprise me in the least if Uber drivers were exempted.


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## Banker Pete (Jan 16, 2017)

And now the bad news - changes to the Pension Work Bonus don’t kick in until 01 July 2019. 
Let’s hope UnbelievaBill Shorten doesn’t get elected and stuff this up.


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