2006/07 Key Tax Changes

End of financial year tax help & tax tips - 2006/07 key tax changes

• Income tax cuts from 1 July 2007. 30% tax rate will start from $30,001. A second round of tax cuts will flow to higher income earners on more than $75,000 in following year.

• The Low Income Tax Offset increase from $600 to $750 from July 1. This will phase out once people earn more than $30,000.

• The Tax Office will introduce Pre- Populated E-returns to simplify income tax returns. Details of salaries, interest, dividends, health insurance and welfare payments will be pre-prepared. Tax payers will still have to make manual claims for tax deductions or more complicated affairs.

• The GST Registration threshold for small business will be increased to $75,000.

• A 30% tax rebate for child care expenses will be paid shortly after the financial year. Previously you had to wait two years to receive rebate.

• One-off doubling of superannuation co-contribution for those who claimed it in 2005/06 financial year.

• Until 30 June 2007, after tax superannuation contributions of as much as $1 million can be made.

• From 1 July 2007, tax free super benefits/withdrawals for superannuation fund members turning 60.