2013 Financial Year New tax change
By Ming Li
Brand new tax brackets – including carbon tax assistance Rates for 2011-‐12 apply from 1 July 2011
Table 1: Tax rates for 2012-‐13 and 2013-‐14
Table 2: Tax rates for 2015-‐16
• The maximum value of the low-‐income tax oﬀset reduces from $1,500 to $445, and aBer that, will be reduced by 1.5 cents in every dollar over $37,000. Previously, that number was at $30,000. That means you’ll be able to earn up to $20,542 before any tax is payable at all. • From 2015, the low-‐income tax oﬀset will be reduced to just $300. • The pensioner tax oﬀset will merge with the new senior Australians tax oﬀset.
Non Resident 非税务居民 Rates for 2011-‐12 apply from 1 July 2011
Non Resident 非税务居民 Rates from 1 July 2012
Non Resident 非税务居民 Rates apply from 1 July 2015
Changes to the private health rebate • The government will start tesNng the private health insurance rebate and the Medicare levy surcharge against income, in three diﬀerent thresholds. High income earners will receive less of the private health insurance rebate, and the surcharge may increase. • The thresholds are a bit complex, but here’s the table straight from the ATO.
Replacing the EducaNon Tax Refund with a School kids Bonus • The School kids Bonus will be made in two equal installments in January and July each year commencing January 2013. • Every family with a child at school will be guaranteed $410 per annum for each primary school student and $820 per annum for each secondary school student. • All eligible families (receive of family tax beneﬁt part A) will receive the full rate of payment and will no longer need to keep receipts as proof of expense, or wait unNl tax Nme.
ConsolidaNng the dependency oﬀsets into one • The Government will consolidate eight dependency tax oﬀsets into a single streamlined and non-‐ refundable oﬀset that is only available to taxpayers who maintain a dependant who is genuinely unable to work due to carer obligaNon or disability.
• The oﬀsets to be consolidated are the: – invalid spouse; – carer spouse; – housekeeper; – housekeeper (with child); – child-‐housekeeper; – child-‐housekeeper (with child); – invalid relaNve; and – parent/parent-‐in-‐law tax oﬀsets.
• This measure will take eﬀect from 1 July 2012.
Mature age worker tax oﬀset to be phased out • The Government will phase out the mature age worker tax oﬀset from 1 July 2012 • for taxpayers born on or aBer 1 July 1957 (i.e. aged under 55 years).
Means tesNng the net medical expenses tax oﬀset • The Government will introduce a means test for the net medical expenses tax oﬀset • (NMETO) as follows.
• Adjusted taxable income Claim threshold Tax oﬀset Above Medicare levy surcharge threshold In the 2012-‐13 income year that is: $84,000 for singles; and $168,000 for couples or families $5,000 10% of eligible expenses incurred Below Medicare levy surcharge threshold $2,060 20% of eligible expenses incurred
• This measure will take eﬀect from 1 July 2012.
Family payments • Changes to Family Tax Beneﬁt Part A The Government will make the following changes to Family Tax Beneﬁt (FTB) Part A: limiNng the age of eligibility; and increasing the rate.
• This measure will take eﬀect from 1 July 2013.
Company loss carry-‐back The Government will provide tax relief for companies by allowing them to carry-‐back tax losses so they receive a refund against tax previously paid.
• Income year Loss carry-‐back 2012-‐13 One-‐year carry back (i.e. tax losses incurred in 2012-‐13 can be carried back and oﬀset against tax paid in 2011-‐12) 2013-‐14 and later years Two-‐year carry back (i.e. tax losses can be carried back and oﬀset against tax paid up to two years earlier)
Companies will be able to carry back up to $1 million of losses each year. This will provide cash beneﬁt of up to $300,000 a year. The loss carry-‐back will be available to companies and enNNes that are taxed like companies. It will apply to their revenue losses only and will be subject to integrity rules, and limited to a company’s franking account balance.
Removal of the CGT discount for non-‐residents • The Government will remove the 50 per cent CGT discount for non-‐residents on capital gains accrued aBer 7.30 pm (AEST) on 8 May 2012. The CGT discount will remain available for capital gains accrued prior to this Nme where non-‐residents choose to obtain a market valuaNon of assets as at 8 May 2012.
Higher tax concession for high income earners reduced • Individuals with income greater than $300,000 will have the tax concession on their contribuNons reduced from 30 per cent to 15 per cent (excluding the Medicare levy). This measure will take eﬀect from 1 July 2012.
Deferral of higher concessional contribuSons cap • The Government will defer increasing concessional contribuNon caps for individuals aged 50 and over with low superannuaNon balances by two years, from 1 July 2012 to 1 July 2014. • Under the higher concessional contribuNons cap measure, individuals aged 50 and over with superannuaNon balances below $500,000 will be able to make up to $25,000 more in concessional contribuNons than allowed under the general concessional contribuNons cap.
Abolishing the maximum superannuaNon guarantee age limit • The Government will remove the superannuaNon guarantee (SG) maximum age limit, with eﬀect from 1 July 2013. This will make it compulsory for employers to provide SG contribuNons for employees aged 75 or older.
Further reform of living-‐away-‐ from-‐home allowances The Government will further reform the tax concession for LAFHAs. – LimiNng access to the tax concession to employees who maintain a home for their own use in Australia, that they are living away from for work; and – providing the tax concession for a maximum period of 12 months in respect of an individual employee for any parNcular work locaNon.
Instant asset write-‐oﬀ • From July this year, any SME with under $2 million in turnover will be able to write oﬀ any asset worth less than $6,500 immediately. The entrepreneurs’ tax oﬀset would be scrapped in order to help fund the $5,000 deducNon for any vehicle purchase from 1st July 2012.
2010-‐11 BUDGET MEASURES THAT WILL NOT PROCEED • The Government will not proceed with the following 2010-‐11 Budget measures: – reducing the company tax rate, from the 2013-‐14 income year and implemenNng an early start to the company tax rate cut for small businesses from the 2012-‐13 income year; – providing a 50 percent tax discount for interest income (was due to commence on 1 July 2013);
– providing a standard deducNon for work-‐related expenses and the cost of managing tax aﬀairs (was due to commence on 1 July 2013); and – providing a tax break for eligible businesses that invest in improving the energy eﬃciency of their exisNng building (was due to commence 1 July 2012).