Taxation
| Marginal tax rates and thresholds 2004/05 |
| Taxable Income |
Tax Payable/Marginal Income Tax Rate* |
| 0 - $6,000 |
Nil |
| $6,001 - $21,600 |
Nil + 17% of each dollar over $6,000 |
| $21,601 - $58,000 |
$2652 + 30% of each dollar over $21,6000 |
| $58,001 - $70,000 |
$13,572 + 42% of each dollar over $58,000 |
| Over $70,000 |
$18,612 + 47% of each dollar over $70,000 |
*Rates shown do not include Medicare levy of 1.5% nor the 1% surcharge which applies to couples with combined incomes including fringe benefits over $100K ($50K for singles) who do not have adequate private health cover. |
Superannuation
| Reasonable Benefit Limits |
| Standard RBLs |
2004/05 |
2003/04 |
| Lump Sum |
$619,223 |
$588,056 |
| Pension |
$1,238,440 |
$1,176,106 |
If benefits are paid before age 55, the lump sum RBL is reduced by 2.5% for each whole year the person is under that age, beginning at the birthday immediately before the benefits are paid.
Maximum Deductible contributions (MDC) |
| Age of member 1 |
MDC 2 |
Gross Personal Contributions
(unsupported persons) 3 |
| |
2004/05 |
2003/04 |
2004/05 |
2003/04 |
| Under 35 |
$13,934 |
$13,233 |
$16,912 |
$15,977 |
| 35-49 |
$38,702 |
$36,754 |
$49,936 |
$47,338 |
| 50 and over |
$95,980 |
$91,149 |
$126,306 |
$119,865 |
- Age determined at date of last contribution in income year.
- Assuming all conditions satisfied
Note : A deduction is not available for a contribution if, for example, it is:
(a) a personal contribution made by a member who is under the age of 18 years at the end of the income year and has not derived income from carrying on of a business or form of eligible employment;
(b) a non-SG/award contribution made more than 28 days after the end of the month in which the relevant member attains age 70;
(c) personal contribution, in respect of which the contributor is entitled to a Government co-contribution.
- Assuming all conditions are satisfied, this amount of personal contributions are required to make the MDC, given that a deduction is available on the first $5000, and 75% of the balance, of those contributions.
Government co-contribution - from 1 July 2004 |
Assessable income
& reportable fringe benefits |
Co-contribution 2004/05 |
Less than or equal
to $28,000 |
Lesser of: Eligible personal contributions x 150% and $1,500 |
More than $28,000
but less than $58,000 |
Lesser of: Eligible personal contributions x 150% or $1,500 reduced by 5c per $1 of assessable income and reportable fringe benefits over $28,000 |
| $58,000 or more |
Nil |
*Thresholds will be indexed annually in line with AWOTE from 1 July 2007.
*The minimum Government co-contribution (where income does not exceed higher income threshold) is $20.
Conditions include that contributor:
|
Social Security
| Age Pension assets test* |
|
| |
Homeowner |
Non Homeowner |
| |
Full Pension |
Pension Cut Out* |
Full Pension |
Pension Cut Out* |
| Single |
153,000 |
312,000 |
263,500 |
422,500 |
| Couple |
217,500 |
481,500 |
328,000 |
592,000 |
Pension reduces by $78 pa/per $1000 of assets over full pension thresholds
Income test thresholds |
| |
Full Pension |
Pension Cut Out* |
| Single income pa |
3,172 |
34,144.50 |
| Couple pa |
5,616 |
57,083.00 |
Pension reduced by 40c per $1 of income over full pension thresholds
Deeming rates for income from financial assets
3% for first $36,400 for singles ($60,600 for couples) and 5% for balance over these amounts.
*Rates effective from 20 Sept 2004 and include Pharmaceutical Allowance.
|
Resident Individual Rates for 2002/03
Taxable Income Tax on this income.
| INCOME |
BASE |
AFTER BASE |
| 0 - $6,000 |
Nil |
Nil |
| $6,001 - $20,000 |
Nil |
17c for each $1 over $6,000 |
| $20,001 - $50,000 |
$2,380 |
30c for each $1 over $20,000 |
| $50,001 - $60,000 |
$11,380 |
42c for each $1 over $50,000 |
| Over $60,000 |
$15,580 |
47c for each $1 over $60,000 |
*Taxable income includes capital gains
*Medicare levy currently 1.5% of taxable income
is not included
Resident Individual Rates for 2003/04
Taxable Income Tax on this income
| INCOME |
BASE |
AFTER BASE |
| 0 - $6,000 |
Nil |
Nil |
| $6,001 - $21,600 |
Nil |
17c for each $1 over $6,000 |
| $21,601 - $52,000 |
$2,652 |
30c for each $1 over $21,600 |
| $52,001 - $62,500 |
$11,772 |
42c for each $1 over $52,000 |
| Over $62,500 |
$16,182 |
47c for each $1 over $62,500 |
*Taxable income includes capital gains
Financial year 1st July 2003 to 30th June 2004
PERSONAL TAX ORGANISER CHECKLIST
Full Name:
Address:
DETAILS & FORMS TO BRING TO THE INTERVIEW
INCOME
-PAYG Payment Summary From Salaries & Wages
-Centrelink Benefit Statements
-Eligible Termination Payment (ETP) form and or Superannuation Benefit Payments
-Other Australian Pensions & Annuities - PAYG Payment Summary etc
-Overseas pensions
-Dividends (Shares) and/or Trust Distribution Statements (Managed Funds)
-Interest Received - Bank Name, BSB, Account Number & Amount Received
-Life Insurance & Friendly Society Bonuses
-Income from businesses, partnerships & trusts
-Other income including foreign exchange gains, royalties, scholarships, grants,
jury service fees etc
-Rental Property Receipts and Payment
-Address of Property
-Date Purchased
-Date first rented
-Gross Rent Received
-Expenses Paid such as
- Agent fees
- Advertising
- Bank fees
- Gardening
- Insurance
- Land & Water Rates
- Loan Interest
- Repairs & Maintenance
- Other
- Capital Gaines (Sale of Shares, Property, Units in Trusts etc)
- Sale Date
- Sale Price
- Settlement Fees
- Date of Purchase
- Cost Price
- Holding Costs
TAX DEDUCTIBLE EXPENSES (must be incurred, be deductible and substantiated)
WORK RELATED EXPENSES (these are examples of some expenses that may
be claimable)
-Protective Clothing
-Corporate Uniforms
-Telephone
-Home Office
-Stationery
-Union Fees
-Tools of Trade
-Subscriptions
-Income Protection Insurance
-Professional Development
-Work-related Self-Education
-Travel, Accomodation, Meals
-Repairs to work equipment
-Depreciation of Equipment
-Conferences, Seminars
-Computers & Software
-Books & Magazines
-Sun protection costs
-Car Expenses
-If less then 5000kms for business:
- Total kms for business
- Type of Car
- Engine Size
- Registration No
- Reason for travel
- If more than 5000 kms for business:
- Can still claim rate per kilometre claiming only 5000 kms
- Other methods (see substantiation) need
- Fuel Costs
- Registration Costs
- Insurance
- Repairs & Maintenance
- Purchase Price of Vehicle
- Date Purchased
INTEREST, DIVIDEND & TRUST DECUCTIONS & OTHER PENSIONS
-Bank Fees
-Interest on borrowings for investment
-Ongoing management fees
-Undeducted Purchase Price of Annuities/Pensions
COSTS OF MANAGING TAX AFFAIRS
-Tax Agent Fees
-Travel to tax agent
-Interest paid to ATO
OTHER DEDUCTIONS
-Partnership Losses
-Tax losses of earlier income years
-Non-employment sponsored superannuation (Self-employed)
- Policy Number
- Name of Fund
- Amount Contributed
- Charitable Donations
OFFSETS (REBATES)
-Amount contributed to superannuation fund on behalf of spouse (if they earn
less then $13,800)
-Amount you contributed to superannuation for youself for government co-contribution
purposes. Bring details such as name of superannuation fund, policy/membership
number, amount contributed.
-Superannuation persion rebateable amount -Spouse (without dependent children),
child-house-keeper or housekeeper
-Parent, spouse's parent or invalid relative
-Ongoing baby bonus claim Private Health Insurance
- Please bring statement/letter from insurer.
-Medical Expenses (if out of pocket is more than $1500 repabe will be 20%
of excess)
- Chemist
- Dental
- Medical
- Medicare Statements
- Optical
- Health Benefits received
- Other
-Zone or overseas forces rebate
-Family Tax Benefit
-Do you receive it from Centrelink? If not, it can be claimed through your
tax return.
OTHER INFORMATION
Deductions claimed must be deductible and substantiated. For substantiation
rules see our website www.abcaccountants.com.au
and navigate through to Tips & Downloads. Other useful information such as
tax planning is also provided for download.
DISCLAIMER: This publication is inteded to inform readers and
provide general guidelines and information. It is not a substitue for professional
advice. Advance Business Centres expressly disclaims all liability to any person
who relies, or partially relies, upon anything contained in this publication.
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