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Personal income tax rates
The following income tax rates apply to taxable income.
| $0 - 6,000 |
0 |
Nil |
| $6,001 - 37,000 |
15 |
15 cents for each $1 over $6,000 |
| $37,001 - 80,000 |
30 |
$4,650 plus 30 cents for each $1 over $37,000 |
| $80,001 - 180,000 |
37 |
$17,550 plus 37 cents for each $1 over $80,000 |
| $180,001+ |
45 |
$54,550 plus 45 cents for each $1 over $180,000 |
Low income rebate : $1,500. Full entitlement where income is less
than $30,000 and then reducing by
4 cents in every dollar, ceasing where income reaches $67,500. Effective
tax-free threshold for low income
earners is $16,000.
Senior Australian tax offset : $2,230 singles, $1,602 for each
partner in a couple. Tax free income is
therefore $30,685 for singles and $26,680 for couples.
New income tests apply to this offset to include reportable superannuation
contributions, net investment losses and fringe benefits.
Medicare levy : 1.5%.
Low income threshold: $18,488 for individuals and $31,196 for families
Medicare levy surcharge thresholds : Additional 1% surcharge may
apply to those without adequate hospital insurance. $73,000 for individuals and $146,000
for families.
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 Saward Dawson home
Personal income tax
Non-resident income tax
Superannuation
Income tax lodgement dates
Medical expenses
Motor vehicle rates
FBT
Depreciation cost limit
ASIC lodgement
Victorian payroll tax
Victorian stamp duty
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Victorian land tax
(for land
held at 31 December 2010)
Your main residence is exempt from land tax
and is excluded from the thresholds below.
| Up to
$249,999 |
Nil |
| $250,000 to $599,999 |
$275 plus 0.2% for amount over $250,000 |
| $600,000 to
$999,999 |
$975 plus
0.5% for amount over $600,000 |
| $1,000,000 to $1,799,999 |
$2,975 plus 0.8% for amount over
$1,000,000 |
| $1,800,000 to $2,999,999 |
$9,375 plus 1.3% for amount over
$1,800,000 |
| $3,000,000+ |
$24,975 plus 2.25% for amount over
$3,000,000 |
Note: Higher rates apply to land held by
a trust
Victorian stamp duty on transfer of real estate
|
$0-$25,000 |
1.4% of the value |
| $25,001-$130,000 |
$350 plus 2.4%
of the value over $25,000 |
|
$130,001-$960,000 |
$2,870 plus 6% value over $130,000 |
| $960,001+ |
5.5% of the
value |
2010 Income tax return lodgement dates
| Individuals not with a tax agent |
|
31 October 2010 |
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Individuals who had more than $20,000 tax payable
on their 2009
tax return, who were on a tax agent's
lodgement program prior to
31 October 2010 |
|
31 March 2011 |
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Individuals who were on a tax agent's
lodgement program prior to
31 October 2010 |
|
15 May 2011 |
Cost base: These costs
include purchase price, stamp duty, legal fees and initial repairs. These
amounts cannot be claimed as a tax deduction, but form the cost base of the
property for Capital Gains Tax purposes. Any fixtures and fittings included
with the purchase can be deducted from the cost base and depreciated.
Borrowing costs: Broker’s
fees, loan establishment fees and similar costs. If the total is less than
$100 these costs are claimed outright, otherwise they are claimed over the
lesser of 5 years or the term on the loan.
Initial
repairs & renovations: These are
part of the cost of establishing your rental property and will form part of
the cost base, however some items may be able to be depreciated.
Joint ownership
Each person has the same interest in the
income and expenses of the property (50/50 for two owners). For ownership to be
in any other split (for example 90% owned by one person and 10% by the other) a
separate legal agreement is required at the time the contract is signed – this
is known as tenants in common.
There are varying
implications for Estate planning. Jointly held assets transfer automatically to
the other owner rather than forming part of your Estate.
Our specialists can provide specific advice
for you.
Rental expenses can
only be claimed while a property is available for rent. This is a complex area
and careful consideration must be given to each situation.
Excluding initial repairs,
ongoing maintenance items such as painting can be claimed as a deduction.
Improvements such as replacing carpets or curtains will be depreciated.
Renovations and structural improvements such as new kitchens and bathrooms
are claimed under the building write-off provisions.
Interest on funds borrowed to
acquire a rental property can be claimed as a deduction (including borrowing
to fund purchase costs such as stamp duty) regardless of the security used
for the loan.
Where a loan is used for both
private and rental purposes the interest will be apportioned.
Interest on
funds borrowed for private use, but secured against an investment property
will not be deductible.
Depreciation can be claimed
on construction costs of capital works including buildings and structural
improvements. A quantity surveyor’s report is required if actual
construction costs are unknown. Generally the rate of claim is 2.5%.
| $1,000 |
Assets costing between $300
and $1,000 can be depreciated using accelerated rates |
|
$1,000+ |
Assets costing more than $1,000 are depreciated using standard
rates provided by the ATO |
Capital Gains Tax
Commencement :
Charged on gains made on assets acquired after
19 September 1985.
Discount :
For individuals, 50% reduction in capital gain
for assets held for more than
12 months excluding the date of purchase and date of sale.
Rate of Tax : The
gain is added to taxable income and taxed
at marginal rates.
Purchase / sale date :
Date contract for sale/purchase signed, not date of settlement.
This is an area of particular
complexities. Property development may be seen as a business and
therefore normal rules may not apply. Before proceeding, seek our
specialist advice for your
individual circumstances.
Residential properties:
GST is not charged on residential rent. GST cannot be claimed
back on expenses relating to residential properties. GST may be
paid on the purchase of a new residential property.
Commercial/industrial:
GST may apply. For those registered for GST, GST will be added
to rent and GST can be claimed on related expenses. Income
threshold is $75,000.
Property development:
GST may apply.
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