Tax Update
Statutory Declaration for PAYG payment Summary
If your PAYG Payment Summary (Group Certificate) has been lost or has not received from your payer (employer), please download the form, complete and lodge it together with your tax return.
Statutory Declaration (for missing PAYG payment Summary)
Benchmark Interest Rates
Benchmark interest rate for the purposes of Division 7A. It is the Indicator Lending Rates – Bank variable housing loans interest rate last published by the Reserve Bank of Australia before the start of the income year.
For the year ended
30 June |
% |
Additional reference (refer to TD below) |
2008 |
8.05 |
TD 2007/23 |
2007 |
7.55 |
TD 2006/45 |
2006 |
7.3 |
TD 2005/31 |
2005 |
7.05 |
TD 2004/28 |
2004 |
6.55 |
TD 2003/19 |
2003 |
6.3 |
TD 2002/15 |
2002 |
6.8 |
TD 2001/20 |
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Resident income tax rates from 1st July 2008
(not including Medicare levy)
| Taxable Income |
Tax rate % |
$0 to $6,000 |
0% |
$6,001 to $34,000 |
15% |
$34,001 to $80,000 |
30% |
$80,001 to $180,000 |
40% |
| Greater than $180,000 |
45% |
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Non-resident income tax rates from 1st July 2008
| Taxable Income |
Tax rate % |
$0 to $34,000 |
29% |
$34,001 to $80,000 |
30% |
$75,001 to $180,000 |
40% |
$180,000 & over |
45% |
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Government Super co-contribution scheme
Under S.6 of SCC Act, the government is currently contribute $1.5 for every $1 an eligible individual contributes into superannuation, up to the maximum of $1500 per annum for that particular year of income, details follows;
| Maximum amount of co-contributions |
$ 1500 |
$1500 reduced by 5c for each dollar of income above Lower Income Threshold ($30,000, in 2007 the threshold is $28000) |
for further details, please send us an e-mail or give us a call
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New Superannuation Contributions Rules (effective from 1 July 2007, applicable to both Employees as well as Self-Employed Persons)
In accordance with s.290-150 to S.290-165, personal superannuation contributions are generally deductible for income tax purposes in the year you make them but please observe the following major changes;
- Eligible persons (self employed/substantially self-employed) will be allowable to claim 100% tax deduction on their personal contributions, and
- Personal deductible contributions (if under 50 years of age) will be subject to the new $50,000 limit ($100,000 for over 50 years of age) on the amount that will be eligible for the tax concessions (taxed at 15%), any additional contributions will be taxed at 46.5%, refer to the following table for details
New Contribution Rules (from 1 July 2007)
| Income year
Under 50 yo |
Deductibility/Tax rates applicable |
Employer and self-employed/substantially self-employed contributions up to $50,000 per annum |
Deductible with 15% contributions tax |
Employer and self-employed/substantially self-employed contributions in excess of $50,000 per annum |
Deductible with tax at 46.5% (15% contributions tax plus 31.5% additional tax) |
| Income year
(2007-2012)
Over 50 yo(transitional arrangement) |
Deductibility/Tax rates applicable |
Employer and self-employed/substantially self-employed contributions up to $100,000 per annum |
Deductible with 15% contributions tax |
Employer and self-employed/substantially self-employed contributions in excess of $100,000 per annum |
Deductible with tax at 46.5% (15% contributions tax plus 31.5% additional tax) |
Note:
- Contributions are generally not deductible once the member turns 75 years of age.
- Age is normally determined at the date the contribution is made.
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Self-employed contribution – Superannuation Deduction Limits, (before 1 July 2007)
You can claim a deduction for personal contributions you make to a complying superannuation fund or RSA if you are either:
- Self-employed or substantially self-employed (total of your assessable income, exempt income and reportable fringe benefits from eligible employment is less than 10% of your total assessable income, or
- Do not receive (and are not entitled to) superannuation support from your employer (unsupported persons).
- A taxpayer who intends to claim a deduction under S.82AAT must give a written notice to, and receive a written acknowledgement from, the fund trustee.
Amount of Contribution |
2007 Maximum Deduction |
0 – A$5,000 |
$5,000 |
A$5,000+ |
$5,000 + 75% of every $1 over $5,000 |
Note:
- Contributions are generally not deductible once the member turns 70 years of age.
- Age is normally determined at the date the contribution is
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Superannuation Contributions
(for Employers/Self-Employed Persons – Age-based deduction limits, before 1 July 2007)
Generally, superannuation contributions are deductible for income tax purposes in the year you make them subject to the following age-based limits.
The following limits apply to:
- Employers and their associates claiming deductions for contributions made for the benefit of an employee, and
- Individuals claiming a deduction for personal superannuation contributions.
Deduction limits based on the age of the employee
| Income year |
Under age 35 |
Age 35 to 49 |
Age 50 to 70 (& 28 days) |
2006–07 |
$15,260 |
$42,385 |
$105,113 |
2005–06 |
$14,603 |
$40,560 |
$100,587 |
2004–05 |
$13,934 |
$38,702 |
$95,980 |
2003–04 |
$13,233 |
$36,754 |
$91,149 |
2002–03 |
$12,651 |
$35,138 |
$87,141 |
2001–02 |
$11,912 |
$33,087 |
$82,054 |
2000–01 |
$11,388 |
$31,631 |
$78,445 |
Note:
- Contributions are generally not deductible once the member turns 70 years of age.
- Age is normally determined at the date the contribution is made.
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Self-employed contribution – Superannuation Deduction Limits, before 1 July 2007)
You can claim a deduction for personal contributions you make to a complying superannuation fund or RSA if you are either:
- Self-employed or substantially self-employed (total of your assessable income, exempt income and reportable fringe benefits from eligible employment is less than 10% of your total assessable income, or
- Do not receive (and are not entitled to) superannuation support from your employer (unsupported persons).
- A taxpayer who intends to claim a deduction under S.82AAT must give a written notice to, and receive a written acknowledgement from, the fund trustee.
Amount of Contribution |
2007 Maximum Deduction |
0 – A$5,000 |
$5,000 |
A$5,000+ |
$5,000 + 75% of every $1 over $5,000 |
Note:
- Contributions are generally not deductible once the member turns 70 years of age.
- Age is normally determined at the date the contribution is
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Deductions for Business Professionals
We have been constantly asked regarding the work related deductions for various occupation including business professionals, the following link will provide information that will be able to help you better understand what claims that you may be entitled when preparing your taxation returns...
Details
Foreign Exchange Rate
All foreign income, deductions and foreign tax paid must be first be converted to Australian dollars before including it in your tax return. From 1 July 2003, these require amounts to be converted at the exchange rate prevailing at the time of a transaction, or at an average rate...
Details
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Superannuation Contributions
(for Employers/Self-Employed Persons – Age-based deduction limits, before 1 July 2007)
Generally, superannuation contributions are deductible for income tax purposes in the year you make them subject to the following age-based limits.
The following limits apply to:
- Employers and their associates claiming deductions for contributions made for the benefit of an employee, and
- Individuals claiming a deduction for personal superannuation contributions.
Deduction limits based on the age of the employee
| Income year |
Under age 35 |
Age 35 to 49 |
Age 50 to 70 (& 28 days) |
2006–07 |
$15,260 |
$42,385 |
$105,113 |
2005–06 |
$14,603 |
$40,560 |
$100,587 |
2004–05 |
$13,934 |
$38,702 |
$95,980 |
2003–04 |
$13,233 |
$36,754 |
$91,149 |
2002–03 |
$12,651 |
$35,138 |
$87,141 |
2001–02 |
$11,912 |
$33,087 |
$82,054 |
2000–01 |
$11,388 |
$31,631 |
$78,445 |
Note:
- Contributions are generally not deductible once the member turns 70 years of age.
- Age is normally determined at the date the contribution is made.
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Self-employed contribution – Superannuation Deduction Limits, before 1 July 2007)
You can claim a deduction for personal contributions you make to a complying superannuation fund or RSA if you are either:
- Self-employed or substantially self-employed (total of your assessable income, exempt income and reportable fringe benefits from eligible employment is less than 10% of your total assessable income, or
- Do not receive (and are not entitled to) superannuation support from your employer (unsupported persons).
- A taxpayer who intends to claim a deduction under S.82AAT must give a written notice to, and receive a written acknowledgement from, the fund trustee.
Amount of Contribution |
2007 Maximum Deduction |
0 – A$5,000 |
$5,000 |
A$5,000+ |
$5,000 + 75% of every $1 over $5,000 |
Note:
- Contributions are generally not deductible once the member turns 70 years of age.
- Age is normally determined at the date the contribution is
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Deductions for Business Professionals
We have been constantly asked regarding the work related deductions for various occupation including business professionals, the following link will provide information that will be able to help you better understand what claims that you may be entitled when preparing your taxation returns...
Details
Foreign Exchange Rate
All foreign income, deductions and foreign tax paid must be first be converted to Australian dollars before including it in your tax return. From 1 July 2003, these require amounts to be converted at the exchange rate prevailing at the time of a transaction, or at an average rate...
Details
Record Keeping Evaluation Tool
If you are thinking of starting a business and or already in business and would like to know more about record keeping, this Record Keeping Evaluation Tool would be a great help to you...
Details
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Deductions for Mechanical, Automotive and Electrical Trades persons
ATO will be reviewing claims for work-related deductions for various occupation including the Mechanical, Automotive and Electrical Trade persons, the following link will provide information that will be able to help you to better understand what claims that you may be entitled when preparing your taxation returns...
Details
Deductions for information technology professionals
ATO will be reviewing claims for work-related deductions for various occupation including the information technology professionals, the following link will provide information that will be able to help you to better understand what claims that you may be entitled when preparing your taxation returns...
Details
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