We all get bombarded with information from every source possible and frankly, it's too much. Even if you haven't already flicked it into spam you probably don't have time to read it. We call it Information Overload. So, on this page we've selected big picture news items we think are relevant and of interest to our clients.
Whilst the ATO publishes that the tax-free threshold is $18,200, income earners can actually earn more than this before they have to start paying tax.
The Low Income Tax Offset (LITO) is a $445 tax offset available to Australian residents who earn less than $37,000. This means that eligible taxpayers can earn up to $20,542 before they have to pay any tax.
The long-awaited housing affordability package commenced on 1 July 2017.
1. NSW has now scrapped stamp duty for first home buyers on existing and new homes up to $650,000.
2. There will also be stamp duty discounts for homes up to $800,000.
3. There also is a $10,000 grant for new homes up to $600,000.
The Government has announced that it will allow future voluntary contributions to superannuation made by first home buyers from 1 July 2017 to be withdrawn for a first home deposit, along with associated deemed earnings. Concessional contributions and earnings that are withdrawn will be taxed at marginal rates less a 30 per cent offset. Combined with the existing concessional tax treatment of contributions and earnings, this will provide an incentive that will enable first home buyers to build savings more quickly for a home deposit.
Recent changes to the corporate tax rate for certain smaller companies has resulted in the necessity to re-consider whether all companies are in fact carrying on a business.
The ATO has now stated that it is not possible to definitively state whether a particular company is carrying on a business.
There are a number of recent changes for those of Age Pension age or approaching retirement. From 1 July 2017, the age to be eligible for the Age Pension is changing.
Clients who were born on or after 1 July 1952 will need to be aged 65 years and six months before being eligible, and the Age Pension age will then go up by six months every two years until 1 July 2023, when the Age Pension eligibility age will be 67.
You’ve made it through the financial year and navigated the new superannuation laws that took effect on 1 July 2017 but there is one thing you should always think about and that’s your investment strategy. Additionally, there is no better time than right after a financial year ends where you can review your self-managed super fund’s (SMSF) investment strategy and its performance.
Be aware of recent changes occurring for some people who hold a Commonwealth Seniors Health Card in relation to the Energy Supplement.
The Energy Supplement is paid quarterly to Commonwealth Seniors Health Card holders. People who claimed the Commonwealth Seniors Health Card after 19 September 2016 would now have received their final payment for the quarter 20 December 2016 to 19 March 2017.
The next time you are washing your hands and complain because the water temperature isn't just how you like it, think about how things used to be in the 1500s.
Most people got married in June, because they took their yearly bath in May and they still smelled pretty good by June. However, since they were starting to smell, brides carried a bouquet of flowers to hide the body odour. Hence the custom today of carrying a bouquet when getting married.