What’s new for 2015 tax returns? Need to lodge your 2015 tax return? Read on to find out the important changes that will affect your 2015 tax return.
The 2015 income tax rates for resident taxpayers are as follows:
|Taxable Income||Tax on this Income|
|$18201-$37,000||19c for each $1 over $18,200|
|$37,000-$80,000||$3,572 plus 32.5c for each $1 over $37,000|
|$80,001-$180,000||$17,547 plus 37c for each $1 over $80,000|
|$180,001 and over||$54,547 plus 47c ** for each $1 over $180,000|
The tax free threshold remains at $18,200. This means that taxpayers with taxable income of < $18,200 may not be required to lodge a 2015 income tax return.
** Temporary Budget Repair Levy
A Temporary Budget Repair Levy of 2% applies to individuals with taxable incomes in excess $180,000. This in effect increases the highest marginal tax rate in the table above to 47% (before Medicare), and is in effect until 30 June 2017.
From 1 July 2014 the full basic Medicare Levy increased to 2%. To find out the new thresholds for Medicare click here.
Low Income Tax Offset
The maximum Low Income Tax Offset (“LITO”) is unchanged for the 2015 income tax year at $445. This is reduced by 1.5 cents in the dollar, for every dollar of income over $37,000 and fully phases out at $66,667. The effect – no tax is payable up to an income of $20,542.
Net Medical Expense Tax Offset
The net medical expense tax offset is being phased out. The final claim for most families will be the 2015 income year on the proviso that you were also entitled to the tax offset in the 2014 income year. From 1 July 2015, transitional arrangements mean claims only for disability aids, attendant care or aged care expenses can be made until 30 June 2019.
The out of pocket eligible expenses for you (and your family) for the 2015 income year must exceed $2,218 before you will be entitled to a 20% tax offset.
Please note that this threshold increases to $5,233 with a 10% tax offset for high income earners (i.e. singles with adjusted taxable income > $90,000 and couples and families with adjusted taxable income > $180,000).
Small Business Tax Incentive
With effect from 7.30 p.m. (AEST) on 12 May 2015 to 30 June 2017 the immediate write-off limit for each small business asset purchased has increased from $1,000 to $20,000.
Ask Us Tax professionals are here to help you get started on your 2015 tax return. Please contact us here for more information on how you can maximise your refund this year.