The tax-free threshold increases to $18,200
from this year.
The option of making a standard deduction of
$500 scrapped – Inthis year’s May Budget the federal
government decided not to introduce the standard deduction.
The Education Tax Refund will be replaced with the new Schoolkids
Bonus. $410 for each child in primary school and $820 for each child in high
school.
Superannuation: From 1 July 2012
all taxpayers, regardless of age, will have their concessional contributions
capped at $25,000. Accordingly, the 2011–12 financial year is the last year
that an individual taxpayer aged 50 or over may make eligible superannuation
concessional contributions of up to $50,000 under the current rules.
The Australian
Government’s superannuation co-contribution limit will also drop
from $1000 to $500 from 1 July 2012. This cut will adversely affect many
low-income earners, who should consider making after-tax contributions to
obtain the maximum superannuation co-contribution before the window closes on 1
July 2012.
Medical expenses: The medical
expenses offset will be means tested for those whose income exceeds the
Medicare levy surcharge next year. They will only be able to claim a 10 per
cent tax refund for net medical expenses exceeding $5000 in the 2012–13
financial year. Hence, where practicable, it may be best to bring forward
eligible medical expenses before 30 June.
Claim the
entrepreneur’s tax offset: The 2011–12 is the final financial year in which
eligible small business entities can claim the entrepreneur’s tax offset, which
is equal to 25 per cent of the income tax payable on the business's net income.
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