Personal Income Tax Tables (2012-2013)

Taxable income	Tax on this income
0 - $18,200	Nil
$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
$80,001 - $180,000	$17,547 plus 37c for each $1 over $80,000
$180,001 and over	$54,547 plus 45c for each $1 over $180,000
	The above rates do not include the Medicare levy of 1.5%

Company Losses–Small Business Concessions

Refer http://www.ato.gov.au/content/00331932.htm

 

In the 2012-13 Federal Budget, the government announced its intention to provide tax relief for companies by allowing them to carry-back tax losses so they receive a refund against tax previously paid.

A one-year loss carry-back will apply in 2012-13, where tax losses incurred in that year can be carried back and offset against tax paid in 2011-12. For 2013-14 and later years, tax losses can be carried back and offset against tax paid up to two years earlier.

Loss carry-back will:

• be available to companies and entities taxed like companies who elect to carry-back losses
• be capped at $1 million of losses per year
• apply to revenue losses only
• be limited to the company's franking account balance.

Reforms to self-education expense deductions

refer ATO: http://www.ato.gov.au/content/00351802.htm

On 13 April 2013, the government announced a proposal to introduce a $2,000 cap on all work-related self-education expenses.

It is proposed that from 1 July 2014, work-related self-education expenses will have an annual cap of $2,000 a person.

The government has confirmed that employers are currently not liable for fringe benefits tax (FBT) for education and training they provide to their employees - this treatment will be retained, unless an employee enters into a salary sacrifice arrangement for work-related education expenses.

Electronic Lodgement of Annual Payment Summaries

I’m very happy tonight as I’ve tested out the ATO’s new file transfer routine for uploading our payroll clients Annual Payment Summaries direct to the ATO (rather than copying to disk & risking mailing them)… and it WORKED!

This will make our year-end processing for all our payroll clients a lot easier and more transparent – and will assist in their employees  employees having their base tax return data available for pre-fill earlier than ever!

Good One ATO!

- Raymond

Voluntary use of PAYG instalments

This is a new facility as advised by the ATO.

Often, when setting up a business, we advise our clients to set aside an amount to cover the tax on the profit of the business. You can quite often setup an online investment account, attached to your main trading account to park tax money.

This new method lets you voluntary enter the PAYG system and activate instalments on each BAS. The ATO will hold those funds until your tax return is lodged. The full amount of instalments will offset against any tax payable for that year (with the balance refunded)

 

Voluntary use of PAYG instalments

The pay as you go (PAYG) instalments system is for individuals and businesses to pay instalments towards their income tax liability.

In your first income year of business, you are generally not required to pay PAYG instalments. This is because we may not receive your tax return and assess your eligibility to pay PAYG instalments until some time after the end of your first income year.

However, you may need to budget for the total amount of income tax you are liable to pay. An alternative is to voluntarily enter the PAYG instalments system.

The option to voluntarily enter the PAYG instalments system is available due to recent improvements in our systems and following feedback supporting it.

Once you enter the PAYG instalments system, any instalments you pay during the income year are credited towards your final tax assessment after you lodge your tax return.

Who would enter the PAYG system?

Taxpayers who are likely to choose to pay PAYG instalments include:

• individuals who are normally excluded from PAYG instalments but are entitled to the seniors and pensioners tax offset (SAPTO)
• businesses that want to pay instalments towards their expected income tax liability
• companies that would like to access franking credits to pay franked dividends to their shareholders but who do not meet the administrative entry rules.

How to estimate the amount of tax you are liable to pay?

Soon after starting a business, you should be able to work out your taxable income periodically - perhaps weekly, monthly or quarterly - using the following formula:

Assessable income - allowable deductions = taxable income

You can use weekly, fortnightly, monthly or quarterly tax tables to see how much tax you need to put aside. If you operate your business as a partnership or trust, refer to the tax rates for individuals to work out your total amount of tax you are liable to pay for the income year.

How do you enter the system?

If you want to enter the PAYG instalments system, you need to call us. Our customer service team will ask you a few questions about your income and deductions. You must advise whether you want to remain in the PAYG instalments system until the end of the income year or until you are manually exited.

Once you have entered the PAYG instalments system, you should receive a letter from us telling you your quarterly instalment rate or amount. At the end of each quarter you will receive an activity statement with the amount you need to pay.

For more information about activity statements, visit Activity statements - home.

If you enter the PAYG instalments system you will remain in the system until the end of the current income year unless you have been re-entered under the PAYG instalments standard entry rules.

How do you change the rate or amount you pay?

If during the income year your circumstances change, you can contact us to vary the amount you are paying to more accurately reflect your likely end-of-year tax situation.

If you choose to enter the system voluntarily, you are not subject to variation penalties for the quarters you are manually entered for.

For more information about varying instalments, refer to How to vary pay as you go (PAYG) instalments.

How do you pay?

We offer a range of convenient payment options, both in Australia and overseas.

For more information about making a payment to us, refer to How to pay.

More information

If you need more information about PAYG instalments, you can:

• phone 13 28 61 (personal tax)
• phone 13 28 66 (business tax)
• write to us at
  Australian Taxation Office
  GPO Box 9990
  SYDNEY NSW 2000

http://www.ato.gov.au/content/00347765.htm

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