The method of determining the taxable value of airline transport fringe benefits will be changed from stand-by value to market value. An airline transport fringe benefit may arise when an employee of an airline or travel agent is provided with free or discounted travel on a stand-by basis. The taxable value is currently the stand-by…
The Government announced that it would further reform the tax concession for living away from home allowances (LAFHA) and benefits by “better targeting it at people who are legitimately maintaining a second home in addition to their actual home for an initial period”. The changes would: limit access to the tax concession to employees who…
The Budget confirmed the Treasurer’s announcement on 6 May 2012 that the Government would allow businesses to carry-back losses. Mr Swan said the proposed changes would “allow businesses to ‘carry back’ their losses, to offset past profits and get a refund of tax previously paid on that profit”. The carry-back will be available to companies…
The Treasurer has announced that the proposed reduction in the company tax rate to 29% will not proceed. The reason given by the Treasurer was that it had become clear that the proposed tax rate cut would not be approved by Parliament. The Treasurer added that the savings from not proceeding with the company tax…
The medical expenses tax offset will be means tested from 1 July 2012. The Government announced that, for people with adjusted taxable income above the Medicare levy surcharge thresholds ($84,000 for singles and $168,000 for couples or families in 2012-13), the threshold above which a taxpayer may claim the medical expenses offset will be increased…
From the 2011-12 income year, the Medicare levy low-income thresholds will be increased for singles to $19,404 (up from $18,839 for 2010-11) and to $32,743 for those who are members of a family (up from $31,789 for 2010-11). The additional amount of threshold for each dependent child or student will also be increased to $3,007…
The Government will limit the availability of the employment termination payment (ETP) tax offset. At present, the ETP tax offset ensures that ETPs are taxed at a maximum rate of 15% for those over preservation age and 30% for those under preservation age, up to an indexed cap ($165,000 in 2011-12 and $175,000 in 2012-13).…
The Government announced that it will not proceed with the 2010-11 Budget announcement for a 50% discount for interest income which was due to commence on 1 July 2013. The Government said its public consultation process involving key sector groups, industry participants and consumer groups “revealed concerns with the complexity involved in calculating the discount…
The Government announced that it would not proceed with the 2010-11 Budget announcement to allow a standard tax deduction for work-related expenses and the cost of managing tax affairs which was due to commence on 1 July 2013. [Thomson Reuters note: In its MYEFO statement released on 29 November 2011 (see 2011 WTB 50 [1898]),…
The Government announced that it will adjust the personal income tax rates and thresholds that apply to non-residents’ Australian income. From 1 July 2012, the first 2 marginal tax rate thresholds will be merged into a single threshold. The marginal rate for this threshold will align with the second marginal tax rate for residents (32.5%)…