Tax Facts

Residential Individual Rates for 2014/15 Residential Individual Rates for 2012/13 and 2013/14
Taxable Income Tax on this income Taxable Income Tax on this income
0 – $18,200 Nil 0 – $18,200 Nil
$18,201 – $37,000 19c for each $1 over $18,200 $18,201 – $37,000 19c for each $1 over $18,200
$37,001 – $80,000 $3,572 plus 32.5c for each $1 over $37,000 $37,001 – $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 $80,001 – $180,000 $17,547 plus 37c for each $1 over $80,000
Over $180,000 $54,547 plus 47c for each $1 over $180,000 Over $180,000 $54,547 plus 45c for each $1 over $180,000

Notes on tax rates

  • Taxable income includes capital gains.
  • The medicare levy imposed at the rate of 2% of taxable income from 1 July 2014 (previously 1.5%) is not included.
  • The 2% temporary budget repair levy which applies where taxable income exceeds $180,000 is included in the 2014/15 rates.
  • Resident individuals are entitled to a refund of imputation credits that exceed the primary tax payable.
  • Resident individuals are entitled to the 50% discount on the disposal of assets that are held for at least 12 months.

Reasonable Travel Allowance Claims Within Australia

Where an employee, company director, or office holder receives an allowance for travel costs within Australia and the person makes a claim for the costs of accommodation, food, drink and incidental expenses up to certain limits, then the person is not required to keep written evidence (i.e. receipts) of the expenses. These deduction limits are based on the salary of the person and the destination of the trip.

The travel must be for business purposes and the person must be sleeping away from home. Note this concession does not apply to self employed persons, including partners in a partnership.

Click here and then scroll down to access the reasonable travel allowance claims within Australia for 2014/15.
Click here and then scroll down to access the reasonable travel allowance claims within Australia for 2013/14.

Reasonable Overseas Travel Allowance Claims

Where an employee, company director, or office holder receives an allowance for travel costs outside of Australia and the person makes a claim for the costs of food, drink and incidental expenses up to certain limits, then the person is not required to keep written evidence (i.e. receipts) of the expenses. These deduction limits are based on the salary of the person and the destination of the trip. Note the person is still required to keep receipts for accommodation expenses.

The travel must be for business purposes. Note this concession does not apply to self employed persons, including partners in a partnership.

Click here and then scroll down to access the reasonable overseas travel allowance claims for 2014/15.
Click here and then scroll down to access the reasonable overseas travel allowance claims for 2013/14.

Goods Taken from Stock for Private Use by Business Owners

The ATO each year issues a Determination which outlines the amounts that are acceptable as estimates of the value of goods taken from trading stock for private use by business owners (including their associates) in certain industries who operate as sole traders or in partnership. The relevant amounts need to be included in the assessable income of the individual for the year.

Note that an adjustment for the GST credits claimed in relation to these amounts also needs to be made.

Fringe benefits tax and a different set of valuation rules apply where the business owner is employed through a company or family trust.

Click here and then scroll down to access the acceptable amounts for 2013/14.
Click here and then scroll down to access the acceptable amounts for 2012/13.

Status of Individuals – Employee or Independent Contractor

The ATO has published a very useful Guide to assist businesses in the Building & Construction to determine if the “individual” they are paying is an employee or independent contractor for income tax purposes. This information can also be applied to workers in other industries.

Companies

The rates of tax for all companies and some associations are as follows:

Year Rate %
2000 36
2001 34
From July 2–1 30

Companies are required to maintain a franking account on a tax paid basis and are not entitled to a refund of imputation credits that exceed the tax payable.
Companies are not entitled to the 50% discount on the disposal of assets that are held for at least 12 months.

Motor Vehicle Depreciation Cost-Limit

Since 1980, the depreciation deduction for cars has been limited by a deemed maximum cost price depending on the year in which the car was acquired.

Income Year Depreciation Cost Limit $
2006 57,009
2007 57,009
2008 57,123
2009 57,180
2010 57,180
2011 57,466
2012 57,466
2013 57,466
2014 57,466

Per Kilometre Motor Vehicle Rates

These rates are used by individuals when making a claim for motor vehicle expenses up to a maximum of 5,000 business kilometres. They are also used by employers when reimbursing employees for business use of their vehicles.

The rates are based on the engine size of the car and are as follows:

Engine Capacity (non-rotary engine) Engine Capacity (rotary engine) Rate per Kilometre (cents)
2008/9 year 2009-10 year 2010/11 year 2011/12 year 2012/13 year 2013/14 year
Up to 1,600cc Up to 800cc 63 63 63 63 63 63
1,601 to 2,600cc 801 to 1,300cc 74 74 74 74 74 76
Over 2,600cc Over 1,300cc 75 75 75 75 75 77

Taxation of Complying Superannuation Funds

Superannuation funds are taxed a rate of 15% on taxable income which includes employer contributions and the deductible portion of self employed contributions. Funds are entitled to a one-third discount on the disposal of assets that are held for at least 12 months and are also entitled to a refund of imputation credits that exceed the tax payable.

Income tax is not payable by the fund on income and capital gains where pensions are paid to the members.

Deductible (Concessional) Superannuation Contribution Limits

The concessional superannuation limits for the 2014/15 year based on a person’s age are as follows:

  • age 49 and over on 30 June 2014 – $35,000 contribution limit
  • age 48 and under on 30 June 2014 – $30,000 contribution limit

The concessional superannuation limits for the 2013/14 year based on a person’s age are as follows:

  • age 60 and over on 30 June 2014 – $35,000 contribution limit
  • age 59 and under on 30 June 2014 – $25,000 contribution limit

Note that super guarantee contributions and salary sacrifice contributions are included in these contribution limits.

Individuals earning more than $300,000 will pay an additional 15% contributions tax on their concessional contributions.

Un-deducted (non-concessional) Superannuation Contribution Limits

Age
2013-14
2014-15
Under 65
$150,000 or
$450,000 over 3 years
$180,000 or
$540,000 over 3 years
65 to – 75
$150,000
$180,000
Over 75
Nil
Nil

Where an individual is under the age of 65 at any time during the income year, there is a “bring forward cap” or 3 year averaging rule applies whereby the individual will be able to utilise the $180,000 cap for the 2014/15 year and for the next two income years ($150,000 in prior years). This means that the individual can in effect contribute a maximum of $540,000 as an undeducted contribution during the 2014/15 year and the subsequent two income years ($450,000 in prior years). The $540,000 limit is automatically triggered during the 2014/15 year where the individual makes after-tax contributions in excess of $180,000 ($150,000 in prior years).

It is important to note that should the bring forward cap be “triggered” prior to 1 July 2014 (for example, where the individual contributes more than $150,000 during the 2013/14 year), the individual will be unable to take advantage of the increased $540,000 contribution limit until the current three year bring forward period ends.

Item * Threshold
Requirements to issue a tax invoice $75
No requirement to withhold if supplier does not quote ABN $75
Turnover for compulsory registration for GST $75,000 (for any 12 months)
Turnover for compulsory registration for GST (non-profit entity) $150,000 (for any 12 months)
Annual turnover for compulsory use of non-cash accounting $2,000,000
Annual turnover for compulsory monthly electronic BAS lodgement $20,000,000

* all amounts are GST exclusive

Disclaimer
This information is provided as a guide only and is not intended to constitute professional advice. You should obtain appropriate advice concerning your particular circumstances.
The firm disclaims all liability for any loss or damage to any person or organisation, whether a user of this site or not, for the consequences of anything done or omitted to be done by any such person relying on this information.
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