Tax Payable*

Up to $6,000

Nil

$6,001 to $34,000

15c for each $1 over $6,000

$30,001 to $80,000

$4,200 + 30c for each $1 over $34,000

$80,001 to $180,000

$18,000 + 40c for each $1 over $80,000

Excess over $180,000

$58,000 + 45c for each $1 over $180,000

Single

$2,230

$28,867

$46,707

Couple (each)

$1,602

$24,680

$37,496

Illness separated (each)

$2,040

$27,600

$43,920

Single homeowner

$171,750

$540,250

Single non-homeowner

$296,250

$664,750

Couple homeowner

$243,500

$856,500

Couple non-homeowner

$368,000

$981,000

Illness separated homeowner

$243,500

$980,500

Illness separated non-homeowner

$368,000

$1,105,000

Single

$138 p/f

$1,519.50 p/f

Couple (continued)

$240 p/f

$2,538.50 p/f

Single

≤ $41,000 >$41,000

4.0% 6.0%

Couple (combined)

≤ $68,200 >$68,200

4.0% 6.0%

Couple (non-pensioner couple)

≤ $34,100 >$34,100

4.0% 6.0%

Income Tax Reduction & Medicare Levy Changes Income tax rates for the 2008/9 have now been legislated. These changes incorporate increases to the Low Income Tax Offset. The Medicare levy thresholds have also increased to ensure that individuals who don’t pay tax won’t pay the Medicare levy.

1 July 2008

First Home Saver Account Allows for establishment and operation of the First Home Saver Account.

1 October 2008

Tax Free Terminal Illness Payments All lump sum superannuation payments received as a result of a terminal illness on or after 1 July 2007 is now tax free.

1 July 2007

Superannuation Guarantee Charge (SGC) Offset Any late SGC payment made into a superannuation account will now be able to offset against the employers SGC liability.

25 June 2008

Final withholding tax on distributions of managed investment trust income This replaces the previous non-withholding tax of 30%. The final withholding rate will reduce on a scaled basis over the next 3 financial years.

1 July 2008

Child Care Rebate Increases from 30% to 50% up to a maximum of $7,500 per child per annum, and will now be paid quarterly rather than annually.

1 July 2008

Family Tax Benefit Part B means testing Will be limited to families where the primary earner has an adjusted taxable income of $150,000 or less.

1 July 2008

Department of Veterans Affairs changes to Partner Service pension age The age for qualification has increased from age 50 to qualifying age. Qualifying age is 60 years for a male and currently 58.5 years for a female (gradually increasing to 60).

Applies to claims made on or after 1 July 2008

Changes to adjustable taxable income definition for fringe benefits for family tax benefit purposes The net value will continue to be used in the adjusted taxable income definition.

1 July 2008

Education Tax Refund

• A 50% refundable tax offset every year up to $750 for each child in primary school (i.e. a refund of up to $375 per child per year).
• A 50% refundable tax offset every year up to $1,500 for each child in secondary school (i.e. a refund of up to $750 per child per year).
• Available to families in receipt of Family Tax Benefit Part A or families who would ordinarily be eligible for FTB Part A but are disqualified because they receive certain Centrelink payments.

1 July 2008

Medicare Levy Surcharge Proposal to increase the surcharge thresholds to $100,000 for singles and $150,000 for couples.

Not law yet – referred to Senate Committee

Same Sex – spouse and child definitions Proposal to amend the definition of both spouse and child for SIS and tax purposes to allow members of a same sex couple to nominate each other as dependants in their own right, rather than having to use the interdependency provisions.

Not law yet – referred to Legal and Constitutional Affairs for inquiry

Various provisions put in place to provide equality for de-factos in relation to family law matters.

Not law yet