In 2013, the Individual Income Tax landscape experienced an unprecedented level of change. The most significant changes relate to the Tax Return/ Tax Refund formats, along with substantial changes to deductions and offsets. At CLY Tax Accountants & Bookkeepers Ringwood, our qualified accountants are always up to date with the changes being implemented by the ATO, thereby ensuring you are always eligible for the maximum refund available to you.
Another notable change is that the ATO has stopped granting tax refunds by sending out cheques; refunds can and only can be deposited via EFT payments. In addition, the tax-free threshold has been increased to $18,200. However, this doesn’t mean that you don’t need to lodge a tax return if your taxable income is under $18,200.
- You may have PAYG Withheld from your income received during the year and you will definitely want to claim those cash back to your pocket.
From 1 July 2012, you may be entitled to a Low Income Super Contribution (LISC) if your Adjusted Taxable Income (ATI) is no more than $37,000 and at least 10% of your total income is from employment or business. The LCSI is a government super payment to help low income earners save for their retirement. The payment is 15% of the concessional (before tax) contributions made by them or their employer to their complying super fund, up to a maximum payment of $500.
In addition, the 2013 tax year sees the introduction of massive changes associated with varies tax offsets, including Net medical expenses tax offset, Pensioner tax offset, Senior Australians tax offset, Mature age worker tax offset and Employment termination payments tax offset. A new Conservation refundable tax offset for qualifying primary producers can be claimed in this year’s tax return as well. In the mean time, the Entrepreneurs tax offset (ETO) has been abolished from this year.
Other changes include the new income thresholds for Medicare levy surcharge, new income tests for private health insurance rebate and more mandatory items to complete in your individual income tax return.
Put simply, the 2013 tax year will be one of the most challenging tax years, given the volume of changes and the level of accountability.
If you want to know more details, don’t hesitate to Contact our Tax Agents servicing Ringwood, Lilydale and Croydon today at CLY Tax Accountants & Bookkeepers Ringwood to find out how we can make sure you receive the biggest tax refund.