Are you ready for Tax Time?

Tax Time is Fast Approaching!!

2017/2018 tax year is gearing up to be one of the lightest years in relation to legislative changes. However, there has been a significant increase in audit and debt collection activity by the ATO recently. This emphasises the need to complete and lodge your tax return correctly and on time.

Personal Superannuation Contributions

From 1st July 2017, Individuals are able to make a fully tax deductible contribution to their Superannuation Fund.

No longer is it a requirement that you must be self employed. Every tax payer (under the age of 75 years old) is entitled to claim a deduction for their contribution. However, this contribution is added to any employer sponsored amount paid in to the fund and must not exceed the superannuation contribution cap of $25,000 per annum.

Now is an ideal time to review your Superannuation Fund and discuss any strategies for super with your Financial Planner.

Remember to check your superannuation statements for confirmation of payments made for the 2017/2018 year as there may be a timing issue in regards to when the fund received the payment.

It is a requirement to have a “Notice of Intent to Claim” Form from your Superannuation Fund to be able to claim your contribution.

Personal Income Tax Change

Proposed changes from 01/07/2018 for low and middle income earners will allow taxpayers earning up to $90,000 per annum an entitlement of up to $530.00 as a non refundable tax offset (Low and Middle Income Tax Offset). Taxpayers earning up to $125,333 per annum may still qualify for a reduced amount of this tax offset.

The Government has indicated further changes in coming years that may result in increased low and middle income tax offsets.

The targeted outcome is to protect Australian Taxpayers from bracket creep.

General Medicare Levy

The medicare levy low income thresholds have increased for the 2017/2018 year to:

2016/2017 2017/2018
Single $21,655 $21,980
Family $36,541 $37,089
Single Senior Australians $34,244 $34,758
Family Senior Australians $47,670 $48,385

For each dependent child or student the family income thresholds increase by a further $3406.00 per child, instead of the previous amount of $3356.00.

The proposed increase to the medicare levy from 2% to 2.5% has been scrapped.

SAPTO – Senior Australian & Pensioners Tax Offset

These amounts for the 2017/2018 year are:

Single Senior Australians can receive $32,279 whilst each member of a couple can receive $28,974 without paying tax.

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