Mr Taxman
Change the way you feel about taxes.
Get informed and discover what the taxman doesn't want you to know.
Sharing it with Australia, Mr Taxman is a regular Woman’s Day columist and TV finance commentator
  • click to visit Mr Taxman on Twitter
  • click to visit Mr Taxman on FaceBook
  • rss

6 Tax Changes taking effect from 1 July

Jun 28, 2011

The only constant about tax is change.  Here are some of the tax changes coming into play from 1 July.

1.      Flood levy

For the first time in 9 years we are not getting a tax cut from 1 July.  Even worse, some of us will be slugged more tax for the first time in decades with the introduction of the Flood Levy with it being charged at 0.5% for those with taxable incomes over $50,000 and increasing to 1% for those earning over $100,000.  It feels a bit unpatriotic to complain though as the pain is small compared to those in Queensland that lost everything earlier this year. 

2.      Phasing out of dependent spouse rebate

If you have a spouse born on or after 1 July 1971 then you will no longer be able to claim the dependent spouse rebate.

3.      Youth allowance loophole closed

Despite a favourable High Court ruling in November 2010, where students that received the Youth Allowance could claim self-education expenses in their tax return for the last four years, this will not be available next year after the loophole was closed in the May Budget.

4.      Children’s bank accounts

Previously $3,333, the maximum that kids can now receive in “unearned” income, such as bank interest, dividends and trust distributions, is $416 without it being taxed as the generous Low Income Tax Offset has been removed for minors.  The $1,500 rebate can now only be offset against their part-time wages. 

5.      Uniforms now part of Education Tax Refund

School uniforms purchased after 1 July 2011, will be claimable for the first time ever under the Education Tax Refund.  Great news for parents who struggle financially in kitting out those growing bodies.

6.      HELP discount to reduce

?

Tags: ChildrenDeductionsEducationFamilyPersonal tax

Author: Mr Taxman

Comments

"How was it decided on "1 July 1971" for the spouse offset cutoff? seems totally random, and I'm tempted to say discriminate based on age! Wonder which politician's spouse was born in 1970"

By: J from Bris on Aug 04, 2012 7:08AM

"No idea why they chose 1971 ... but it has now been updated in the 2012 Federal Budget to 1951 - wonder who has a spouse born in 1950?"

By: Mr Taxman on Aug 06, 2012 1:00PM

Post a New Comment

Media Availability

Are you interested in booking Mr Taxman for a speaking engagement or requesting his viewpoints for an article?

comments-rhsLatest Comments

  • " Are you going through difficulties in your relationship worry no more here is the solution DR.Nana Kwaku Bonsam of Ghana is here to help in any breakup get ex love back contact info Email..."

    By: Alexander at Oct 10, 2019 4:40AM

    Post: Marriage

  • " Are you going through difficulties in your relationship worry no more here is the solution DR.Nana Kwaku Bonsam of Ghana is here to help in any breakup get ex love back contact info Email..."

    By: Alexander at Oct 10, 2019 4:40AM

    Post: Marriage

  • "A big thanks to Dr Oselumen i never believe that there still exist a real death spell caster after all this years of disappointment from the enormous spammers on the Internet who go about scamming..."

    By: Anusha Todurkar at Oct 09, 2019 10:58PM

    Post: Marriage

  • "Hello my name is Jenna i want to share my amazing experience with the greatest spell caster Priest Ade my husband was cheating on me and when i found out we had a fight which lead to him filling for..."

    By: Jenna at Oct 08, 2019 6:42AM

    Post: Marriage

  • "Hi Mr Tax Man, This tax year I will be over the threshold and will receive a HELP bill to pay. Problem is I am moving to a low employment area for family reasons and It could be some time before I am..."

    By: will at Oct 06, 2019 11:44PM

    Post: Two important dates for those with HECS/HELP debts