Business Advisors & Tax Accountants Melbourne

From 1 July 2014:

  • no taxpayer will be able to claim the Dependent spouse tax offset in their 2015 tax return and subsequent year returns; and
  • no taxpayer will receive the Mature age worker tax offset in their 2015 and subsequent years Notice of Assessment.
  • a taxpayer, where eligible, will be able to claim both the Zone, overseas forces or the civilian tax offset and the Dependent (invalid and carer) tax offset. In previous years, where a taxpayer claimed at both T5 Zone or overseas forces and T7 Dependent (carer or invalid) offset the ATO would allow T5 and disallow T7.

In individual tax return:

From 1 July 2014, the Medicare levy will increase by half a percentage point, going from 1.5 per cent to 2 per cent.

The reportable fringe benefits (FBT) amount of $3,738 will increase to $3,773 as a consequence of the FBT rate increasing from 46.5% to 47% from 1 April 2014.

The calculation spouse’s ATI, the multiplier of FBT has changed from 0.535 to 0.53.

In non-individual return:

The increase in the Medicare levy will also apply to the rate of no-TFN-quoted contributions tax (paid by superannuation entities) and will increase this rate by 0.5%

At the same time (from 1 July 2014) the government has applied a 2% Temporary Budget Repair Levy to the rate of no-TFN-quoted contributions tax.

The no-TFN-quoted contributions tax rate, now reflects the increase of 0.5% for non-complying SMSFs and 2.5% for complying SMSFs to the no-TFN-quoted contributions tax rate, giving a change of:

  • 1.5% to 2% for non-complying SMSFs
  • 31.5% to 34% for complying SMSFs

To support the use of SuperStream standards for SMSF, the ATO will now collect and store SMSF superannuation bank account details and SMSF alias (electronic service address) details. The SMSF annual return has been modified to include two new data fields to capture SMSF superannuation bank account details and SMSF alias (electronic service address).

  • Applies to small business (turnover under $2m) assets acquired and installed ready
    for use between 7:30pm (AEST) 12 May 2015 and 30 June 2017.
  • Assets valued less than $20,000 can be immediately written off (low cost assets
    worksheet).

The pooled assets can be immediately deducted if the balance is less than $20,000

As part of the government’s election policy, financial assistance will be provided to specific apprentices on a special needs list by providing interest-free loans referred to as Trade Support Loan (TSL).

TSL will be a new income contingent loan and will have compulsory repayments raised on a taxpayer’s Income Tax Notice of Assessment (NOA) once the taxpayer’s repayment income exceeds a minimum repayment threshold. The repayment rates and thresholds for TSL will utilise the current Higher Education Loan Program (HELP) rates.

If the taxpayer has both a HELP and TSL debt, the priority is to pay off the HELP debt first.

The R&D tax incentive will be reduced by 1.5%:

  • from 45% to 43.5% for the R&D refundable tax offset; and
  • from 40% to 38.5% for the R&D non-refundable tax offset.

The government announced in the 2014-15 budget that it would impose a temporary budget repair levy of 2% on that part of the taxable income of an individual that exceeds $180,000. The levy commences 1 July 2014 and will be imposed for three years. It applies to both residents and non-residents. There are consequential changes for rates and taxes that reference the top rate of tax. As a result the top marginal rate has increased from 45% to 47%. However the levy is imposed separately to the marginal rates of income tax and cannot be reduced by non-refundable tax offsets.

The calculation of basic income tax to include TBRL:

[Basic income tax] – [Tax offsets] + [TBRL] – [Foreign income tax offset]