A Taxing Time Ahead …
There are a number of tax and legislative changes coming into play from 1 July
2012. Read on for our summary of these changes.
Flood Levy
The flood levy was introduced for this financial year 2011/12 only. It will cease to be effective after 30 June 2012
Income Tax
The statutory tax-free threshold increases from $6,000 to $18,200 from 1 July 2012. This change is part of the Carbon Tax legislation enacted earlier this year.
The tax-free threshold will further increase to $19,400 from 1 July 2015.
Individual marginal tax rates of 15% & 30% will increase to 19% & 32.5%, respectively,from 1 July 2012.
The 32.5% tax rate will further increase to 33% from 1 July 2015.
Table 1 : Individual Marginal Tax Rates & Thresholds from 1 July 2012
Annual Income Range
($)
Table 1 : Individual Marginal Tax Rates & Thresholds from 1 July 2012
Annual Income Range
Tax Rates 2012/13
(Residents)
Up to $18,200 $0
$0 + 19% over $18,200
$3,572 + 32.5% over $37,000
$17,547 + 37% over $80,000
$54,547 + 45% over $180,000
Source: www.ato.gov.au
Source: www.ato.gov.au
What do these tax changes mean for individuals?
Table 2 : Income Tax Analysis – 2012/13 fy
Income Tax 2011 – 12 fy Tax 2012 – 13 fy Tax Savings
$30,000 $2,550 $2,247 $303 pa
$60,000 $12,150 $11,847 $303 pa
$12,150 $11,847 $303 pa
$90,000 $22,600 $22,597 $3 pa
$22,600 $22,597 $3 pa
$120,000 $34,150 $34,147 $3 pa
$34,150 $34,147 $3 pa
$190,000 $61,900 $61,897 $3 pa
$61,900 $61,897 $3 pa
Includes Medicare Levy but ignores Flood Levy; includes Low Income Tax Offset
Source: www.ato.gov.au; RBS Morgans
