Alan Lewis Accountants - BLOG » Budget 2007-08

New personal income thresholds to apply from 1 July 2007

Christie Lewis — Sun, 01 Jul 2007 14:06:00 +0000

The Tax Office today reminded employers to apply the new personal income thresholds to all payments they make to their employees from 1 July 2007.

The new rates have been introduced following changes to the income tax thresholds announced in the May Federal Budget.
Employers should be aware that changes to superannuation from 1 July means there are also three new withholding schedules (tax tables) for payments made to superannuation funds.

Deputy Commissioner Erin Holland said the new weekly and fortnightly tax tables have been mailed to all employers in the last fortnight.

“The new rates apply to all payments made on or after 1 July even if some of the payment relates to work performed before this date.”

These new weekly and fortnightly tax tables are also available from most newsagents, the Tax Office website http://www.ato.gov.au/ or by calling 13 72 26.

Tax Concessions for Small Business

Christie Lewis — Thu, 14 Jun 2007 00:00:00 +0000

From 1 July 2007, small businesses with turnover of less than $2 million a year will be eligible for a range of tax concessions under the Government’s proposed changes to the law. Small businesses will also be able to pick and choose which tax concessions best suit their business.

It’s important to find out more about the new tax concessions now if you are currently registered for GST because the proposed changes may affect the way you report and account for GST early in the 2007-08 income year.Visit www.ato.gov.au/SBconcessions or give us a call to find out more.Source: Activity Statement Update – Quarter 4 2006-07

Budget Highlights: Cutting Red Tape for Small Business

Christie Lewis — Sat, 19 May 2007 13:53:00 +0000

From 1 July 2007:

The annual turnover thresholds for registration for the GST is increasing from $50,000 to $75,000 for businesses.

This is great news for many small business who are heavily burdened with compliance obligations and mounting late fines.

From 1 July, qualifying businesses may elect to de-register for GST and save themselves the headache. Every situation is different so it is important to speak with your accountant before making this decision.

Any clients considering this should give Alan a call first to discuss it. He will be able to advise you if deregistering is the best option for you personally at this time.

Feel free to give our office a call on (02) 4390 4156 or email alan@lewistaxation.com.au.

Child Care Budget Changes #2

Christie Lewis — Sat, 19 May 2007 06:11:00 +0000

The second 2007-08 Budget initiative relating to child care comes in the form of changes to the way parents currently claim the child care tax rebate.

2. The Government will bring forward payment of the Child Care Tax Rebate (CCTR) and pay it through the Family Assistance Office (FAO) at the end of each financial year. This means eligible families will receive the rebate soon after the end of the financial year – a lot easier than the current way of having to wait and claim it the following year.

Who will benefit?

The change will benefit all working families who receive CCB for approved child care. These families will now be able to receive a payment equivalent to 30% of their out-of-pocket expenses up to $4,000 indexed per child per year for approved child care at an earlier time. The payments will begin from September 2007 for child care expenses incurred in the 2006-07 year.

Good News!

Families who incurred child care expenses in both the 2005-06 and 2006-07 years will receive two rebates in 2007-08, potentially totalling up to $8,000 (indexed) per child! The first rebate will be received as part of their tax assessment, while the second will be received as a direct payment from the FAO.

How do I get it?

For child care costs incurred in 2005-06 you still need to keep your paperwork and claim the Child Care Tax Rebate (CCTR) in your 2006-07 tax return. For child care costs incurred after 1 July 2006 the FAO will pay the CCTR directy into your bank account after you have lodged your tax return.

Child Care Budget Changes #1

Christie Lewis — Sat, 19 May 2007 06:09:00 +0000

According to the Family Assistance Office, a number of the 2007-08 budget initiatives will impact Centrelink and FAO customers.

Two significant changes have been announced in regard to child care. They are both good news for parents.

1. The rate of Child Care Benefit (CCB) will be increased by 10 per cent, on top of the normal CPI increase. As a result of these changes on 1 July 2007 families will receive a total CCB increase of more than 13%. What does that mean in your world? It means up to an extra $20.50 per child per week, for one child in full time care (5 days per week) for low income families.

Who will benefit?

All families who are currently receiving CCB and those who are eligible for CCB in the future will benefit from the additional financial support provided through the CCB changes.

How do I get it?

You don’t need to do anything to receive the CCB increase. The Family Assistance Offcie will automatically adjust your entitlement. If you have chosen to receive your payment as a lump sum, it will be paid after you have complete your tax return at the end of the financial year.

Budget Highlights: Personal Tax Cuts

Christie Lewis — Thu, 17 May 2007 14:10:00 +0000

The Government has announced $31.5 billion of tax cuts over the next 4 years:

• From 1 July 2007, the 30 per cent threshold will rise from $25,000 to $30,000.

• From 1 July 2008, the 40 per cent threshold will increase to $80,000, and the 45 per cent threshold will increase to $180,000

More Personal Tax Cuts

Christie Lewis — Tue, 15 May 2007 06:18:00 +0000

According to Budget 2007-08, all taxpayers will benefit from from a further $31.5 billion in tax cuts over the next four years.

Highlights include:

From 1 July 2007, the low income tax offset will increase to $750 per year and the 30 per cent threshold will rise from $25,000 to $30,000.

From 1 July 2008, the 40 per cent threshold will increase to $80,000 and the 45 per cent threshold will increase to $180,000.

That’s great news for next year but what about this tax season? Well, thanks to the May 2006 budget, it’s still good news for low income earners.

More taxpayers are likely to qualify for the Low Income Tax Offset (LITO) this year as a result of the offset increasing from $235 to $600 and not starting to phase out until $25,000. So what does that mean for you? It means a reduced offset may be possible up to a taxable income of $40,000.

Cash Bonus for Senior Australians

Christie Lewis — Mon, 14 May 2007 05:56:00 +0000

On Tuesday, 8 May 2007 the Commonwealth Government announced details of the Budget for 2007-08.One-off $500 Payment

A non taxable one-off payment of $500 will be paid by 30 June 2007 to each person of age pension age eligible for Utilities Allowance as at 8 May 2007.
A payment of $500 will also be paid to each self-funded retiree eligible for the Seniors Concession Allowance as at 8 May 2007.
In addition, a one-off payment of $500 will be made to each person eligible for Mature Age Allowance, Partner Allowance and Widow Allowance as at 8 May 2007.