--- title: "Issue #83: 1 July 2018 Personal income tax cuts" description: New personal income tax rates come into effect from 1 July 2018. 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[Professional Services](http://koustas.com.au/our-services/accounting-for-business/details/6/accountants-for-the-professional-services-industry.html) - [Marketing & Creative](http://koustas.com.au/our-services/accounting-for-business/details/7/accountants-for-the-marketing-multimedia-online-creative-industries.html) - [Our People](https://koustas.com.au/our-people.html) - [Client Resources](https://content.koustas.com.au/blog) - [The Koustas Oracle](https://content.koustas.com.au/blog) - [Client Portal Login](https://koustas.com.au/client-resources/client-portal-login.html) - [Trust Assessments](https://koustas.com.au/client-resources/trust-assessments.html) - [Contact](https://koustas.com.au/contact.html) - [Client Resources](https://content.koustas.com.au/blog) - The Koustas ORAcle # Issue #83: 1 July 2018 Personal income tax cuts   ![Red Ring Binder with Inscription Tax Law on Background of Working Table with Office Supplies, Laptop, Reports. Toned Illustration. Business Concept on Blurred Background. 3d Render.-1](https://content.koustas.com.au/hubfs/Stock%20images/Red%20Ring%20Binder%20with%20Inscription%20Tax%20Law%20on%20Background%20of%20Working%20Table%20with%20Office%20Supplies%2c%20Laptop%2c%20Reports.%20Toned%20Illustration.%20Business%20Concept%20on%20Blurred%20Background.%203d%20Render.-1.jpeg)   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. 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