Tax cut – The threshold for the 30% rate is being lifted from
$35,000 to $37,000 and the tax rate on income between $80,000 and
$180,000 is being cut from 38% to 37%
From 1 July 2011, individuals
will be able to claim a standard deduction of $500 for work-related
expenses and costs of managing their tax affairs.
In 2012-13 and
later years, the standard deduction amount will rise to $1,000.
Taxpayers with expenditure above these amounts will continue to be able
to make claims in usual manner.
From 1 July 2011, eligible
individuals will receive a discount up to $500 – equal to 50% - of the
interest they earn from deposit accounts.
Standard Business
Reporting (SBR) will be introduced in the ATO from July 2010. By using
SBR-enabled software, you will be able to complete and lodge forms
within your software, based on your financial, accounting and payroll
records. You can lodge BAS, TFN declarations and fringe benefits tax
returns.
Introduction of AUSkey – From July 2010, business with an
AUSkey will be able to use Standard Business Reporting (SBR) enabled
software to lodge and report directly to participating government
agencies.
Safe harbour provisions – From 1 March 2010, under the
safe harbour provisions, taxpayers who use a registered tax agent or BAS
agent, and provide them with relevant information, will not be liable
for a penalty for making a false or misleading statement that results in
a shortfall amount if the shortfall occurred because tax agent didn’t
take reasonable care and not lodging a document on time where you
provided the tax agent with the information soon enough for tax agent to
lodge on time.
Also from 1 March 2010, new laws affecting the
registration and regulation of tax agents and anyone providing business
activity statement (BAS) services for a fee came into effect. Under the
Tax Agents Services Act 2009, only registered tax agent or registered
BAS agent to continue to provide BAS services for a fee or other reward.
e-Record will no longer be available to download. All support for
e-Record will cease after 30 September 2010. Clients who use e-Record
should consider moving to other commercially available softwares.
Medicare levy low-income thresholds – This will be increased to $18,848
for individuals and $31,196 for families. The threshold increases by
$2,865 for each dependent child or student. For pensioners below the age
pension the threshold will increase to $27,697. These changes are to be
apply from the 2009-10 income year.
Deadlines for business tax
break for small business with annual turnover of less than $2 million
bought an eligible asset before 31 December 2009 have until 31 December
2010 to first use, install or improve the asset to qualify for the
additional deduction. You will then be able to claim 50% tax deduction
in the income tax return for the year in which you first used, installed
or improved the asset.
Delay in processing tax returns – You may
still experience some delay in processing in tax returns as ATO is
getting to grips with new computer system bugs.
Division 7A –
Amendments to the non-commercial loan rules apply from 1 July 2009. One
of the changes that may affect private companies concerns shareholders
or their associates who use company assets for free, or for less than
their market value. These arrangements will now be treated as payments
for the purpose of Division 7A.
Stricter rule apply obtaining an
ABN. Individuals are generally only entitled to register for an ABN if
they are carrying on an enterprise in Australia or have a clear business
intent. This came about as many business are incorrectly treating
employees as contractors and pressuring them to get an ABN so they can
reduce labour costs.
JH Business Services & Taxation Accounting | Business Advisory | Tax Services Specialist in small to medium business & personal tax services
Norwest Office
Suite 205 29-31 Lexington Drive Bella Vista NSW 2153