UPDATES ON PERSONAL INCOME TAX 2016-17

December 17, 2017 by sayaraj@gmail.com

The government has made some significant changes:

Low Income Tax Offset (LITO)

The LITO has been reduced to $445 as a full entitlement, with a withdrawal rate of 1.5 cents per dollar of income over $37,000. With LITO, the effective tax-free threshold is $20,542

Education Tax Refund (ETR): Taxpayers can no longer claim ETR. ETR is replaced by a new payment called the School kids Bonus.

Living Away From Home Allowance (LAFHA):

Tighter rules commence 1 October 2012. The tax concession only to be available to employees who maintain a home for their own use in Australia, that they live away from for work, and for a maximum period of 12 months for an employee at each work location

Spouse Offset: You CANNOT claim this tax offset if:

your spouse was born on or before 1 July 1952
your adjusted taxable income (ATI) for 2013-14 was more than $150,000, or
you had a spouse for the whole year and their ATI for 2011-12 was $9,973 or less.

Medical Offset:

Regarding Medical Expense / offset: From 01 July 2013 but, taxpayers are restricted to net eligible expenses for disability aids, attendant care or aged care.

Pl click the link to find out on the same: https://www.ato.gov.au/Individuals/Income-and-deductions/Offsets-and-rebates/Medical-expenses/

Changes to Family Tax Benefit Part A:

From 1 January 2013, FTB Part A will be limited to young people under 18 years or for secondary school students, the end of the calendar year in which they turn 19. Individuals no longer eligible for FTB Part A may be eligible for the Youth Allowance.
Absences from Australia from 1 January 2013: The FTB Part A payments above the base rate will be reduced to the base rate after 6 weeks of temporary absence from Australia (down from 13 weeks). In addition, the current portability reset period will be reduced to 6 weeks (from 13 weeks).

Removal of capital gains tax discount for non-residents

The 50% capital gains tax discount for non-resident individuals on taxable Australian real property or mining assets capital gains accrued after 7.30 pm (AEST) on 8 May 2012 will no longer be available. Non-residents will be subjected to tax on 100% of such gains.