2012/12/10

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2013 Financial Year New tax

changeBy

Ming Li

Brand new tax brackets –

including carbon tax assistanceRates for 2011-12 apply from 1 July 2011

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Table 1: Tax rates for 2012-13 and 2013-14

Table 2: Tax rates for 2015-16

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• The maximum value of the low-income tax offset

reduces from $1,500 to $445, and after 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 非税务居民非税务居民非税务居民非税务居民

Rates for 2011-12 apply from 1 July 2011

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Non Resident 非税务居民非税务居民非税务居民非税务居民

Rates from 1 July 2012

Non Resident 非税务居民非税务居民非税务居民非税务居民

Rates apply from 1 July 2015

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Changes to the private health

rebate• The government will start testing 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.

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Replacing the Education 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 until tax time.

Consolidating 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 obligation or disability.

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• The offsets to be consolidated are the:– invalid spouse;

– carer spouse;

– housekeeper;

– housekeeper (with child);

– child-housekeeper;

– child-housekeeper (with child);

– invalid relative; 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 after 1 July 1957 (i.e.

aged under 55 years).

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Means testing 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.

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Family payments

• Changes to Family Tax Benefit Part A

The Government will make the following changes to

Family Tax Benefit (FTB) Part A:

limiting 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.

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• 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

entities 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.

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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 after 7.30 pm (AEST) on 8 May

2012. The CGT discount will remain available

for capital gains accrued prior to this time

where non-residents choose to obtain a

market valuation 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

contributions reduced from 30 per cent to 15

per cent (excluding the Medicare levy). This

measure will take effect from 1 July 2012.

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Deferral of higher concessional

contributions cap• The Government will defer increasing concessional

contribution caps for individuals aged 50 and over

with low superannuation balances by two years,

from 1 July 2012 to 1 July 2014.

• Under the higher concessional contributions cap

measure, individuals aged 50 and over with

superannuation balances below $500,000 will be

able to make up to $25,000 more in concessional

contributions than allowed under the general

concessional contributions cap.

Abolishing the maximum

superannuation guarantee age limit

• The Government will remove the superannuation

guarantee (SG) maximum age limit, with effect from

1 July 2013. This will make it compulsory for

employers to provide SG contributions for employees

aged 75 or older.

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Further reform of living-away-

from-home allowancesThe Government will further reform the tax

concession for LAFHAs.

– Limiting 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 particular work location.

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 deduction for

any vehicle purchase from 1st July 2012.

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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 implementing 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 deduction 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

existing building (was due to commence 1 July

2012).

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