Me on ABC Adelaide 891 June 20, 2012
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What we know, from July 1:
MORE FOR HOUSEHOLDS
HIGHER INCOME TAX-FREE THRESHOLD Earnings of up to $18,200 tax-free (previously $6000)
INCOME TAX CUTS Every worker earning up to $80,000 will pay less tax.
Current scale Starting July
From $6001 15% From $18,201 19%
From $37,001 30% From $37,001 32.5%
From $80,001 37% From $80,001 37%
From $180,001 45% From $180,001 45%
LOW INCOME SUPER TAX RELIEF: A payment of up to $500 a year will effectively mean no tax is paid on compulsory super contributions for workers earning up to $37,000 a year.
SCHOOLKIDS BONUS Worth $410 per annum for each primary school student and $820 for each secondary school student for families on Family Tax Benefit A. To be paid each January and July from January 2013. An early full-year payment was made this month.
EXTRA FAMILY TAX BENEFIT Families receiving the maximum rate of Family Tax Benefit Part A with two or more children will receive an extra $300 a year if they have one child, $600 a year for two or more children. Families receiving the base rate will get $100 a year if they have one child, $200 if they have two or more children.
LUMP SUM SUPPLEMENTARY ALLOWANCE $210 a year for singles or $350 a year for couples receiving benefits such as Newstart, Youth Allowance, Austudy and Parenting Payment.
CLEAN ENERGY SUPPLEMENT equal to a 1.7 per cent increase in pensions, allowances and family payments, worth up to $338 per year for single pensioners and self-funded retirees, up to $510 per year for pensioner and self-funded retiree couples, up to $110 per child for a family that receives Family Tax Benefit Part A. Paid fortnightly from March or July 2013. Advance payments were made in May and June.
LOW INCOME SUPPLEMENT $300 per year for low income households who do not receive sufficient levels of assistance through tax cuts or other carbon compensation payments
ESSENTIAL MEDICAL EQUIPMENT PAYMENT $140 per year to people who experience additional energy costs from the use of essential medical equipment
FLOOD LEVY The flood levy used to help rebuild flood-affected areas in Queensland – paid by people earning more than $50,000 - will no longer apply...
LESS FOR HOUSEHOLDS
EXTRA SUPER TAX FOR HIGH INCOME EARNERS Australians earning more than $300,000 will pay 30% tax on super contributions (up from 15%)
LOWER CAP ON EXCESS SUPER CONTRIBUTIONS For most people the cap will fall from $50,000 to $25,000. Extra contributions of more than $25,000 will be taxed at 31.5 per cent in addition to the 15 per cent superannuation contribution tax.
MEANS-TESTED PRIVATE HEALTH INSURANCE REBATE Individuals earning more than $84,000 and families earning more than $168,000 will have their rebates cut 10 percentage points. (For instance those under 65 will get a rebate of 20% instead of a 30% rebate.) Individuals earning more than $97,000 and families earning more than $194,000 will have their rebates cut 20 percentage points. Individuals earning more than $130,000 and families earning more than $260,000 will get no rebate.
MEDICARE LEVY SURCHARGE Currently 1% for individuals earning more than $84,000 and families earning more than $168,000 who do not take out private health insurance, the surcharge will climb to 1.25% for individual incomes of $97,001 to $130,000 and family incomes of $194,001 to $260,000. It will climb to 1.5% for individual incomes above $130,000 and family incomes above $260,000.
NET MEDICAL EXPENSES TAX OFFSET INCOME TEST Individuals earning more than $84,000 and families earning more than $168,000 will have to spend $5000 on out-of-pocket medical expenses before they are eligible to claim the offset ($2,120 next year) and will only be able to claim 10% of what is spent (normally 20%).
GOLDEN HANDSHAKES FOR EXECUTIVES Tax breaks will only apply to first $180,000 of the departure payment
MORE FOR BUSINESSES
LOSS CARRY-BACK: Companies will be able to uses losses of up to $1 million to get a refund of tax previously paid.
INSTANT ASSET WRITE-OFF: Small businesses will be able to immediately write off eligible assets costing less than $6500
ACCELERATED DEPRECIATION: Small businesses will be able to claim up to $5000 as an immediate deduction for motor vehicles purchased from 2012-13
LESS FOR BUSINESSES
CARBON TAX – Almost 300 heavy carbon emitters to pay $23 a tonne for every tonne of carbon they release.
MINERALS RESOURCES RENT TAX – Iron ore and coal miners to pay 30 per cent mining tax.
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