Newsletter
Federal Budget June 2011
PERSONAL TAXATION
Personal Tax Rates - No Change But Remember the Flood Levy
The Government did not make any changes to the currently legislated tax rates which apply for the 2010–11 and following years. Click heading to read further.read more
Minors no longer entitled to low income tax offset on unearned income
The Government will remove the ability of minors (children under 18 years of age) to access the low income tax offset (LITO) to reduce tax payable on their unearned income, such as dividends, interest, rent, royalties and other income from property, with effect from 1 July 2011. Click heading to read further.read more
Low Income Tax Offset - a Little Extra in the Pay Packet
From 1 July 2011, the Government will increase the proportion of the low income tax offset (LITO) that is delivered through workers’ week-to-week pay packets from 50% to 70%. Click heading to read further.read more
Dependent Spouse Rebate for Spouses Under Spotlight
The Government announced it will phase out the tax offset for dependent spouses aged less than 40 (ie born on or after 1 July 1971) “to help encourage more Australians into paid employment”. Click heading to read further.read more
No More Deductions for Youth Allowance Recipients
The Government will amend the tax law to prevent deductions being claimed against all government assistance payments, with effect from 1 July 2011. Click heading to read further.read more
Medicare Levy Thresholds Increased for 2010 - 11
From the 2010–11 income year, the Medicare levy low-income thresholds will be increased for singles to $18,839 (up from $18,488 for 2009–10) and to $31,789 for those who are members of a family (up from $31,196 for 2009–10). Click heading to read further.read more
SUPERANNUATION
Excess contributions tax new limited refund
The Government will provide eligible individuals who breach the concessional contributions cap by up to $10,000 with a one-off option to request that these excess contributions be refunded to them. Click heading to read further.
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Minimum Pension Drawdowns for 2011 - 12
The minimum annual payment amounts for pensions and annuities will be reduced by 25% for 2011–12 and will return to normal in 2012–13. Click heading to read further.read more
Concessional Contributions - Higher Cap for Those Aged 50 and over
The Government will set the proposed higher concessional contributions cap at $25,000 above the general concessional cap, for eligible individuals aged 50 and over with total superannuation balances of less than $500,000. Click heading to read further.read more
BUSINESS TAXATION
Small Business Motor Vehicle Instant Tax Write-off
The Government will provide Australian small businesses with an instant tax write-off of the first $5,000 of any motor vehicle purchased from 2012–13. Click heading to read further.read more
FBT and Cars - Flat 20% Valuation Rate to Apply
The Government announced what would amount to implementation of a Henry Tax Review recommendation that the current statutory rates for valuing car fringe benefits be replaced with a single statutory rate of 20%, regardless of the number of kilometres travelled. Click heading to read further.read more