Optional Standard Deductions
From our June, 2010 issue
From 1 July 2012 the Government will provide individual taxpayers with an optional standard deduction of $500 in lieu of claiming work-related expenses and the cost of managing their tax affairs.
The standard deduction will be increased to $1,000 from 1 July 2013.
NOTE: This measure is available to all taxpayers regardless of whether they have work related expenses or expenses related to managing their tax affairs.
In other words – under the current proposal any taxpayer can claim the standard deduction.
Taxpayers with expenses above the standard deduction will be able to continue to claim those expenses when lodging their tax return under the existing rules.
All taxpayers will have the option to lodge an income tax return and continue to claim all their deductible expenses rather than the standard deduction being offered by the Government.
This information is for guidance only and is not intended as specific advice to any reader. Professional advice should be obtained before acting on any information contained herein. The publisher accepts no responsibility for loss occasioned to any person or organisation as a result of action or the refrain of action as a consequence of the contents of this publication.