Tax Rates for the 2013 & 2014 tax year will be:
$0 to $18,200 – 0%
$18,201 to $37,000 – 19%
$37,001 to $80,000 – 32.5%
$80,001 to $180,000 – 37%
$180,001 + – 45%
The Low Income Tax Offset will reduce to $445
Tax Rates for the 2015 tax year and beyond will be:
$0 to $19,400 – 0%
$19,401 to $37,000 – 19%
$37,001 to $80,000 – 33%
$80,001 to $180,000 – 37%
$180,001 + – 45%
The Low Income Tax Offset will reduce to $300
- The proposed introduction of Standard Work Related Expenses announced in last year’s Budget has been scrapped.
- The proposed 50% tax discount on interest income has been scrapped
- The various dependant tax offsets (Carer spouse, Child-housekeeper (no children and with children), Invalid spouse, Invalid relative, parent, housekeeper (no children and with children)) will be removed and replaced with a single dependent’s tax offset.
From 1 July 2012 the Net Medical Expenses tax offset will be means tested. If your adjusted taxable income exceeds the Medicare Levy Surcharge threshold (currently $84,000 for singles and $168,000 for couples/families) then the threshold before becoming eligible to claim the offset increases from $2,000 of out of pocket medical expenses to $5,000. Further, the tax offset also halves from 20% to 10%.
From 1 July 2012, Employment Termination Payments (ETP) in the form of Golden Handshakes will have the tax offset limited such that a taxpayer will only receive a tax offset on the ETP to the extent that the ETP takes their taxable income to $180,000. No tax offset will be available where the taxpayer’s taxable income (including the ETP) exceeds $180,000.
