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Tax Time 2015 Key Changes

  • Friday, 01 January 2016 22:08

MEDICARE LEVY INCREASE

From 1 July 2014, the government increased the Medicare levy rate from 1.5% to 2% of taxable income for the 2014–2015 income year and later income years to help fund DisabilityCare Australia. increase

Medicare levy low-income thresholds will be increased from 1 July 2015. The thresholds under which you don’t have to pay the Medicare levy are increasing as follows:

  • Senior Australian Pensioner Tax Offset recipients - $33,044 (up from $32,279);
  • Couples with no children - $35,261 (up from $34,367);
  • Couples with dependant children - $35,261 (up from $34,367) plus $3,238 for each dependant child; and
  • Singles - $20,896 (up from $20,542).

TEMPORARY BUDGET REPAIR LEVY

As part of the 2014–2015 federal Budget the government introduced a temporary budget repair levy. From 1 July 2014, individual taxpayers with a taxable income of more than $180,000 per year have had additional tax withheld by their employer. The levy is payable at a rate of two per cent of each dollar of a taxpayer’s taxable income over $180,000. If the levy applies to you, it will appear on your 2015 notice of assessment.

NET MEDICAL EXPENSES TAX OFFSET PHASE-OUT medical offset

The net medical expense tax offset (NMETO) is being phased out. To be eligible to claim the NMETO in your 2015 tax return, you must have received an amount of the tax offset in both your 2013 and 2014 notices of assessment. If you did, you can claim for all types of eligible medical expenses.

If you did not receive an amount greater than zero for this offset on both your 2013 and 2014 notices of assessment you can only claim net medical expenses that relate to disability aids, attendant care or aged care.

The eligibility rule does not apply to out-of-pocket medical expenses relating to disability aids, attendant care and aged care. These expenses can continue to be claimed until 30 June 2019.

MATURE AGE WORKER TAX OFFSET ABOLISHED

The mature age worker tax offset has been abolished and cannot be claimed in your 2015 tax return. The 2014 tax return was the last tax return in which the offset could be claimed.

NOTICE OF ASSESSMENT AND TAX RECEIPT DELIVERY FOR MYGOV ACCOUNT HOLDERS

If you have created a myGov account and linked the ATO you will receive your notice of assessment, tax receipt and other mail direct to your myGov Inbox. By linking the ATO to your myGov account you have agreed to receive ATO correspondence in your myGov Inbox, instead of the ATO sending the mail to you.

TAX FILE NUMBER (TFN) DECLARATION FORMS

TFN declaration forms will no longer include a payer’s copy. For record keeping purposes, you will need to make your own copies of completed declaration forms.

 

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