XYZ Accounting for your individual online tax return
The following are the latest updates from the ATO for 2014-2015 tax returns.
Removal of the Dependent Spouse Offset
The Dependent Spouse Offset can no longer be claimed this year, but you may still claim the Invalid and Invalid Care Offset if your spouse is disabled or cares for a disabled person.
Temporary Budget Repair Levy
If your income is over $180,000, a temporary budget repair levy of 2% will be calculated on your taxable income. The levy will be calculated using the information provided in your income tax return.
Expanded $20,000 Business Asset Write-Off
In the 2015 budget, the government announced its intention to allow small businesses with an aggregate turnover of less than $2 million to immediately deduct assets they start to use or ready for use provided the asset costs less than $20,000. These changes will apply to assets bought and put to use or ready for use after 7.30pm (AEST) 12 May 2015.
Health Insurance Offset
There is no longer a health insurance rebate on Lifetime Health Cover (LHC) loading.
Additionally, from 1 April 2014, all rebate percentages will be adjusted annually by a rebate adjustment factor, representing the proportional increase in the consumer price index compared to the proportional average premium increase.
- There will be two rebate percentages for premiums paid; One percentage will be for premiums paid from 1 July 2013 to 31 March 2014 and another percentage rate for premiums paid on or after 1 April 2014 through to 30 June 2014.
Medicare Levy Surcharge (MLS)
The medicare levy surcharge has increased to the following;
- $136,001 & over: 1.5%
- $102,001 - $136,000: 1.25%
- $88,001- $102,000: 1%
- $272,001 & over: 1.5%
- $204,001 - $272,000: 1.25%
- $176,001 - $204,000: 1%
Note: There is not a surcharge for singles with income below $88,001 and families with income below $176,001.
For families with children, for each child after the first, the thresholds have increased by $1,500.
Net Medical Expenses Offset
- The 20% net medical expenses threshold has increased to $2,162
- The 10% higher income earners net medical expenses threshold has increased to $5,100
The following spouse tax offset amounts have changed;
- The spouse’s adjusted taxable income limit (ATI) has increased to $10,166.
- The maximum spouse tax offset has increased to $2,471
Dependent Parent Tax Offset
The dependent parent tax offset will not be available if the dependent's adjusted taxable income exceeds $7,530.
Invalid Relative Tax Offset
The invalid relative tax offset will not be available if the dependent's adjusted taxable income exceeds $3,910.
Child Housekeeper Tax Offset
The dependent's adjusted taxable income must be less than $2,015. The offset is reduced by $1 for every $4 it exceeds $2,015.
Cents Per Kilometre Car Expenses
The cents per kilometre rate has increased to;
- 65 cents for non-rotary engines up to 1,600cc and rotary engines up to 800cc
- 76 cents for non-rotary engines between 1,601 to 2,600 and rotary engines between 801cc and 1,300cc
- 77 cents for non-rotary engines over 2,600cc and rotary engines over 1,300cc
The limit of business kilometres you can claim remains at 5000.
Reasonable Travel Allowances
The reasonable amount for overtime meal allowance expenses has increased to $27.70.
Reasonable travel allowances now also include the following;
- overtime meals
- domestic travel
- employee truck drivers
- overseas travel
- The superannuation guarantee contribution percentage rate has increased by 0.25% to a rate of 9.25%.
- The concessional cap for those 59 years or over has increased to $35,000.
Senior Australian Pensioner Tax Offset (SAPTO) Thresholds
The SAPTO income thresholds have changed.
In order to receive the maximum SAPTO tax offset, your income must be equal to or less than the following amounts;
- Single: $32,279
- Each member of a couple: $28,974
- Each member of an illness-separated couple: $31,279
The SAPTO tax offset will be reduced if your income falls within the following income thresholds;
- Single: $32,280- $50,119
- Each member of a couple: $28,975- $41,790
Each member of an illness-separated couple: $31,280- $47,599