The Government passed the Taxation (Income Tax Rate and Other Amendments) Bill on 3rd December 2020. Among other changes, the top tier personal income tax rate changes from 33% to 39% effective from the 2022 income tax year. Learn more about the changes and if you need to review your business before the changes come into effect, here are the main points:
- A new top personal income tax rate of 39% has been introduced, effective from the beginning of the 2022 income tax year.
- The new marginal tax rate of 39% will apply to all employment income over $180,000 per year, including bonuses, back pay, redundancy and retirement payments.
- There are also changes to fringe benefit tax, employer’s superannuation contribution tax and retirement contribution savings tax, residential land withholding tax and resident withholding tax.
Business Structure Reviews
It’s important to review your business structure ahead of the changes. The Villa team will be reviewing our clients with earnings above $180,000 per year and also clients with retained earnings in their company.
We can meet with you to provide appropriate recommendations on tax structures ahead of the changes coming into effect. If this is you, please get in touch with the Villa team, as we need to act before 31 March 2021.
Set An Appointment
Please contact Annè directly via email or phone the Villa office:
P: 09 4340 771