Changes to your tax system

Changes to the tax system will allow around 68,461 low and middle income earners in the electorate of Barker to receive immediate tax relief.

Barker MP Tony Pasin said low and middle income earners will keep more of what they earn and have more money in their pockets.

"Those earning up to $126,000 in Barker will receive up to $1,080, and dual income couples will receive up to $2,160,"

The Government has also locked in the benefits of low and middle income tax relief by increasing the top threshold of the 19 cents in the dollar tax bracket from $41,000 to $45,000 and by increasing the low income tax offset from $645 to $700 in 2022-23.

"Together, these tax relief measures will create a flatter and better tax system that will improve incentives for those working hard in Barker," Mr Pasin said.

"It will also ensure that 94 per cent of Australians will face a marginal tax rate no higher than 30 cents in the dollar in 2024-25.

"Australians voiced their loud and clear support for our comprehensive tax package at the election. They supported a tax system that rewards aspiration and encourages effort, and we have delivered it.

"Lower taxes are part of our plan for a stronger economy."

Changes to reporting

Assitionally, The Australian Taxation Office (ATO) is advising taxpayers that some people may not receive a payment summary directly from their employer this financial year.

This information, now referred to as an 'income statement' instead of a 'group certificate', will continue to be pre-filled into people's income tax return or provided to their registered agent.

Assistant Commissioner Karen Foat said this is because many employers are now reporting wages, tax and super information to the ATO each payday.

"Around nine million Australians will be able to see their year-to-date salary and wages, PAYG withholding tax, and any employer super contributions in near real time," Ms Foat said.

"If you use a tax agent to lodge your return, you don't need to do anything. We provide your agent with this information and they can lodge your return as usual.

If you lodge your own return using myTax, this information will be pre-filled into your return.

"Most employers have until 31 July 2019 to finalise their employees' income statements so, we strongly encourage taxpayers to wait a few weeks before lodging their tax return."

This also provides longer for other information such as from banks, health funds and government agencies to be pre-filled in your return as well, making the whole process easier.

"If you lodge your tax return before your income statement is tax ready, your employer might make changes, and you may need to lodge an amendment. In some cases, additional tax and interest may be payable," Ms Foat said.

Taxpayers who have linked their myGov accounts to ATO online services will receive a message when their income statement is tax ready, for agents this information will be available in pre-fill reports.

"We know from previous years that the early birds who lodge in the first weeks of July are far more likely to make mistakes or submit incomplete data. That's why we suggest waiting and letting the ATO do most of the work pre-filling your tax return," Ms Foat said.

The ATO is also warning taxpayers with multiple jobs to take extra care. Those with more than one job should wait until all their employers have reported to the ATO or provided a payment summary.