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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

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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

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comments-rhsLatest Comments

  • "Not with me Timothy. Sorry."

    By: Mr Taxman at May 17, 2017 8:15PM

    Post: Received your tax refund yet?

  • "Hi I would like to get my tax refund done I'm pretty sure I did it with guys 2014 "

    By: timothyhughes at May 15, 2017 12:47AM

    Post: Received your tax refund yet?

  • "Just wondering if you are in trades via the forex and at 1st July you a still in those trades this would not be considered trading stock as suggested by the ATO as the profits/losses have yet to be..."

    By: Chris at May 11, 2017 5:40AM

    Post: Foreign currency trading

  • "nice work thank you"

    By: AFL Sports news at May 08, 2017 10:01AM

    Post: Marriage

  • "My ex-partner and I broke up at the end of August 2016 and I am now a sole parent who receives Family Tax Benefit. My ex-partner has not does his tax return for the 2015/16 financial year and..."

    By: Melanie at May 05, 2017 12:26AM

    Post: Marriage