2005/06 Key Tax Changes

End of financial year tax help & tax tips - 2005/06 key tax changes

• Tax cuts at the top end – the top two marginal rates cut to 40% and 45%, $150K thresholds.

• The superannuation contributions surcharge was abolished from 1 July 2005.

• Tax-free benefits for the over-60s, no reasonable-benefit limits.

• A new 30% tax offset is available for out-of-pocket child care expenses. Expenses for the 2004/05 year are claimable in the 2005/06 tax return.

• A new 200% depreciation rate for newly acquired assets.

• From July 1 the fringe benefits tax rate will be reduced to 46.5%.