GM Tax & Accounting Services

Annual Income Tax Update – July 2016


Contact Details 

Head Office.

71 Muller Rd Hampstead Gardens  SA 5086

 Ph 08-83690477    Fx 08-8369 2078    

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Salisbury Office

88 John Street Salisbury SA 5108

Ph 08-83690215

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Elizabeth North

Shop2/165 Woodford St Elizabeth North


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    Tax time is here 

        Personal income Tax rates

2015/2016  Tax Threshold

Tax Rate %

0 - $18,2000

                 Tax Free 0 %

$18,201 - $37,000

         19.0% Tax + Medicare 2%

$37,001 - $80,000

         32.5% Tax + Medicare 2%

$80,001 - $180,000

         37.0% Tax + Medicare 2%

$180,001  → +

         45.0% Tax + Medicare 2%         TBRLevy* 2% on  >$180,001

 * The Government’s 3 year “Temporary Budget Repair Levy” on individuals with     Taxable incomes in excess of $180,001 per annum, continues to 30 June 2017. The 2% levy applies on the amount above $180,001.

Medicare levy is now 2% for persons in the taxable income range

  Key   changes   affecting   your   individual   tax   return

·      Removal of the Mature Age Worker’s Tax Offset ( MAWTO )

·        Dependent Spouse Tax Offset ( DSTO ) is abolished.

·        5% tax discount for all SBE ( Small Business Entity ) , Sole Trader, Partner of  SBE partnership or a beneficiary of an SBE trust. Non refundable tax offset capped at $1000.

·        Car expenses can only use ‘cents per Km’ or ‘log book’ method. Under 'cents per Km’, one single rate per Km will apply, for eg 66c/km for the 2016 year.

·        Net medical expenses tax offset is being phased out. As a result, you can only claim disability aids ( TR93/94), attendant care, and aged care facilities.

·        Zone tax offset. The tax offset is now limited to those people who genuinely live in a designated zone. The zone offset is not available to Fly-in Fly-out  or Drive-in Drive-out employees who work in a designated zone but have  their usual place of residence outside that zone.

         ATO   Individual   Audit   focus  hotspots   for   2016

New data-matching programs introduced for individual tax payers
  • State revenue offices  and your declared rental income
  • Home business online sales .. eBay, Facebook … 

  • Home business sales of $10.000 or more .. hobby or business ?

  • Common work  related expenses. Travel, vehicle maintenance,  tools …

  • Hidden audit traps with applying the 6 month rule for changing main residences

  • The CGT dangers with ‘Granny flat’ and other similar arrangements in the  backyard

  • Rental property claims , particularly the cost of repairs  and interest on loans claims

  • Transporting work equipment from home to work is now denied as a  travel  claim in certain circumstances

 Download our helpful Taxation checklist here