Useful Knowledge

Individual	Small to Medium Business	Superannuation

Individual

 

How would 2013 -2014 budget affect individuals

The cuts are now personal - Sydney Morning Herald 22 May 2013

 

What is new from 1 July 2013?

• Bank detail and tax refund

  From 1 July 2013, if you lodge individual income tax returns electronically, and you are expecting a refund, you will need to provide bank account details including BSB, account number and account name.

  
  

  Alternatively, refunds can be deposited straight to our trust account on your behalf. We will issue a cheque to you or transfer the refund to your bank account when the refund is received from ATO. For overseas bank account, international transfer fee of $32.00 apply, which is in additional to administration fee of $22.00 for fee out of refund. You may also like to know that if you would like to receive the refund in your paypal account, the international transfer fee will be waived.

• No rebate for lifetime health cover loading

  From 1 July 2013, the private health insurance rebate will no longer be paid on any lifetime health cover loading applied to the cost of a private health insurance policy for lifetime health cover. Lifetime health cover is a penalty that applies where an individual has not taken out and maintained private health insurance from the year a person turns 31.

 

What is new for 2012-13 year?

• Private health insurance rebate and Medicare levy surcharge changed.

  Income thresholds

  	Base tier (no change)	Tier 1	Tier 2	Tier 3
  Singles	$84,000 or less	$84,001-97,000	$97,001-130,000	$130,001 or more
  Families*	$168,000 or less	$168,001-194,000	$194,001-260,000	$260,001 or more
  Private health insurance rebate entitlement
  Under 65 years old	30%	20%	10%	0%
  65-69 years old	35%	25%	15%	0%
  70 years old or over	40%	30%	20%	0%
  Medicare levy surcharge
  Rate	0.0%	1.0%	1.25%	1.5%

• Mature age worker tax offset changed

  For 2012-13 and future year returns, you must have been born before 1 July 1957 to qualify for the offset. The '55 years of age or older' rule will no longer apply. Notes: The maximum tax offset is $500.

• The entrepreneurs' tax offset (ETO) has been abolished from 2012-13
• Capital Gains tax – the 50% individuals discount has been removed for non-residents

• Individual tax rate changed

  see the calculator section for detail
• Super co-contribution reduces from 1,000 to 500
• Super contributions for income earners over 300,000 to be taxed 30% rather than 15%
• Super deductible employer contribution limit drops from 50,000 to 25,000 for over 50’s

• Low income super contribution

  The low income super contribution (LISC) is a government payment to help low income earners save for their retirement.

  From the 2012-13 income year, your LISC is 15% of the concessional (before tax) super contributions you or your employer make. The maximum payment you can receive for a financial year is $500 and the minimum is $20.

  You are eligible for a LISC if:

  • you have concessional contributions for the year made to a complying super fund
  • your adjusted taxable income does not exceed $37,000 (if you are required to lodge a tax return)
  • you are not a holder of a temporary resident visa (New Zealand citizens in Australia do not hold temporary resident visas and are therefore eligible for the payment)
  • 10% or more of your total income is derived from business or employment
  • the amount payable is $20 or more.