2011/12 Key Tax Changes - JH Business Services & Taxation

2011/12 Key Tax Changes

The flood levy will apply for the 2011-12 income year to resident & non-resident individual taxpayers, who have a taxable income over $50,000 and superannuation lump sum payouts of more than $50,000.
Deductions for study and job seeking expenses resulting from the Anstis decision – Taxpayers who received or have received Austudy, Abstudy and Youth allowance payments to undertake study and incurred study expenses can now claim a tax deduction for their expenses. Also, Newstart allowance and Youth allowance job seeker and have incurred expenses in actively seeking paid work can also claim tax deduction for their expenses.
Motor vehicle fringe benefits tax rate changes

School uniform expenses will be eligible education expense for Education Tax Refund from 1 July 2011.
HECS-HELP benefits expanded to nursing graduates. Maximum benefit amount for 2009-10 is $1,558.50.
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 businesses are incorrectly treating employees as contractors and pressuring them to get an ABN so they can reduce labour costs.
Audit of Self Managed Superannuation Fund from 1^st July 2011 must engage a totally independent auditor. In-house audits are not allowed and legislation is now in place for ASIC to register all SMSF auditors for additional governance. This rule does not affect majority of our clients as they are already audited by independent auditor.