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

  • "A really interesting question Mel. Whilst negative gearing of a rental property is great for the higher earning spouse as there is a nice tax deduction which comes back to them, it comes to bite..."

    By: Mr Taxman at Mar 04, 2020 9:36PM

    Post: Marriage

  • "Your refund is your asset. It would be up to the courts to determine if you have to share your assets when you settle your split."

    By: Mr Taxman at Mar 04, 2020 9:28PM

    Post: Marriage

  • "Sorry to hear Emma. Generally speaking when it comes to completing your income tax return and including spouse details, a spouse includes another person who: * you were in a relationship with that..."

    By: Mr Taxman at Mar 04, 2020 9:22PM

    Post: Marriage

  • "Admittedly not too much depreciation with a 2011 car but there will still be a few $$$ there still. My motto is that you would pick up $20 if it was on the ground so why not claim it in your tax..."

    By: Mr Taxman at Mar 04, 2020 8:59PM

    Post: Claiming car expenses

  • "Geez 15 hours is a long shift. I certainly hope you get some breaks during the week. Generally, meals are considered a private expense. You can only claim a deduction for meals when you receive..."

    By: Mr Taxman at Mar 04, 2020 8:48PM

    Post: Claiming car expenses