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What’s new in 2013?

What’s new in 2013?

Personal tax rates

The income tax thresholds and tax rates for residents (excluding the 1.5% Medicare levy) are:

2012 – 2013 Income Year – Current 2013 – 2014 Income Year
Taxable Income ($) Rate Taxable Income ($) Rate
0 – 18,200 0% 0 – 18,200 0%
18,201 – 37,000 Nil + 19% of excess over 18,200 18,201 – 37,000 Nil + 19% of excess over 18,200
37,001 – 80,000 3,572 + 32.5% of excess over 37,000 37,001 – 80,000 3,572 + 32.5% of excess over 37,000
80,001 – 180,000 17,547 + 37% of excess over 80,000 80,001 – 180,000 17,547 + 37% of excess over 80,000
180,001 + 54,547 + 45% of excess over 180,000 180,001 + 54,547 + 45% of excess over 180,000

Increase to Medicare low-income thresholds

  • The Medicare levy low-income thresholds will be increased to: $20,542 for individuals and $33,693 for members of a family
  • The additional amount of threshold for each dependent child or student will also increase to $3,007. The increase in these thresholds ensures that low income families and individuals are not liable to pay the Medicare levy.
  • The Medicare levy threshold for pensioners below Age Pension age will increase to $32,279. This increase will ensure that pensioners below Age Pension age do not pay the Medicare levy when they do not have an income tax liability.
  • Date of effect – 1 July 2012

Medical expenses tax offset

  • A 20% tax offset generally applies for eligible net medical expenses over an indexed threshold $2,120 for 2012-13 ($2,162 for 2013-14).
  • For people with adjusted taxable income above the Medicare levy surcharge thresholds ($84,000 for singles and $168,000 for couples or families in 2012-13), the threshold above which a taxpayer may claim the NMETO will be increased to $5,000. Further, the rate of reimbursement will be reduced to 10% for eligible out of pocket expenses incurred.
2012-13
Tier Income ($) Offset
  Singles Couples/
families
<65   yrs
old
65-69   yrs
old
>70   yrs
old
0-84,000 0-168,000 30% 35% 40%
1 84,001-97,000 168,001-194,000 20% 25% 30%
2 97,001-130,000 194,001-260,000 10% 15% 20%
3 130,000+ 260,000+ 0% 0% 0%

Superannuation guarantee rate increase

  • The superannuation guarantee rate will progressively increase from 9% to 12%, from 1 July 2013 to 1 July 2019.
  • 2003-13: 9%     2013-14: 9.25%     2014-15: 9.5%     2015-16:10%
  • The maximum age limit for the superannuation guarantee, currently 70 years, will be abolished.
  • Date of effect – 1 July 2013

Superannuation – Concessional contributions

  • The 2010-11 Budget measure allowing individuals aged 50 and over with total superannuation balances below $500,000 to contribute up to $50,000 per year in concessional contributions will be deferred for two years from 1 July 2012 to 1 July 2014.
  • This means that for the 2013 and 2014 financial years, the maximum concessional (deductible) contribution that can be made by any individual, regardless of age, is $25,000.
  • Date of effect – 1 July 2012

Increase tax rate for concessional contributions for high income earners

  • Currently, a 15% flat tax rate applies to concessional superannuation contributions. From 1 July 2012, individuals with an income greater than $300,000 will have their contributions taxed at the rate of 30%.
  • The definition of “income” for this purpose will include concessional superannuation contributions. If an individual’s income excluding their concessional contributions is less than $300,000, but the addition of their concessional contribution raises them above this threshold, the 30% tax rate will only apply to that part of the contribution in excess of $300,000.
  • The higher tax rate will not apply to concessional contributions that exceed the concessional contributions cap, as these are already taxed at marginal rates.
  • Date of effect – 1 July 2012

Electronic refunds

  • Individual tax returns with an estimated refund will require Australian bank account information including BSB, account number and name to be entered when lodging electronically.
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