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

  • "Yes you show the km allowance as taxable income and then you can also make a claim for your car travel. Under the cents per kilometre method you are limited to the first 5000km. So if you get..."

    By: Mr Taxman at Jun 04, 2025 11:57PM

    Post: Claiming car expenses

  • "No would not be able to claim the Uber home nor to the station the next day. The trip to the off-sit meeting would be claimable."

    By: Mr Taxman at Jun 04, 2025 11:55PM

    Post: Claiming car expenses

  • "Depends on your finance type ... if you takeout a lease then the lease payment forms part of your costs (but no depreciation can be claimed) ... if you takeout a Hire Purchase or a Loan then only the..."

    By: Mr Taxman at Jun 04, 2025 11:54PM

    Post: Claiming car expenses

  • "The cost of the trailer itself could be depreciated - usually over 8 years. Assuming no personal usage with it then 100% of that depreciation plus annual rego could be claimed."

    By: Mr Taxman at Jun 04, 2025 11:50PM

    Post: Claiming car expenses

  • "That would be a non-deductible trip unfortunately Erin"

    By: Mr Taxman at Jun 04, 2025 11:48PM

    Post: Claiming car expenses