There have been quite a few tax changes over the past year which could affect you as an individual taxpayer.
Removal of the Baby Bonus
The baby bonus will no longer be available for 2009–10 and future years. You can still claim it for previous years (2001–02 to 2008–09) up until 30 June 2014 if you are eligible and have not already made a claim.
Reforms to Income Tests
From 1 July 2009, the Tax Office will apply new income tests to work out if you:
- can claim certain tax offsets
- can receive some government benefits or concessions
- must pay Medicare levy surcharge
- must pay tax.
You will have to complete some extra labels in your tax return where they apply to you or your spouse. Read more about the new income tests.
Same Sex Relationships
Definitions have changed to ensure equal treatment for same sex couples and their families.
The reforms will ensure that same-sex couples are able to access the same tax concessions available to married and opposite-sex de facto couples. The eligibility criteria still has to be met for entitlement to tax offsets and concessions.
From 1 July 2009, there are changes to the exemption rules for foreign employment income earned by employees who are Australian residents. Foreign employment income will generally be taxable and taxpayers can claim a foreign income tax offset for foreign tax paid on the income.
This year you’ll find the ATO requires more details on your tax return regarding your super co-contributions.
This will help them to work out your entitlements by sorting amounts on your tax return into eligible income, ineligible income and assessable income.