Tax cuts announced in the 2020 Federal Budget and passed through federal parliament on 9 October, 2020 have now been applied in AdviceOS and Digital Advice.
This includes the following changes:
- The second stage of the Personal Income Tax Plan has been brought forward by two years to 1 July 2020;
- The Low and Middle Income Tax Offset (LMITO) has been retained until 30 June 2021;
- The increase in the Low Income Tax Offset (LITO) from $445 to $700 has been brought forward to the 2020-21 financial year.
The Medicare levy low-income thresholds have also been updated as follows:
- The threshold for singles has increased from $22,398 to $22,801;
- The family threshold has increased from $37,794 to $38,474;
- For single seniors and pensioners, the threshold has increased from $35,418 to $36,056;
- The family threshold for seniors and pensioners has increased from $49,304 to $50,191;
- For each dependent child or student, the family income thresholds increase by a further $3,533, instead of the previous amount of $3,471.
These updates are available in all AdviceOS and Digital Advice calculators from Wednesday 21 October and the changes will be applied retrospectively to calculations where applicable.
