TAX IN PRACTICE MEANS TESTING THE PRIVATE HEALTH INSURANCE OFFSET

Save this PDF as:
 WORD  PNG  TXT  JPG

Size: px
Start display at page:

Download "TAX IN PRACTICE MEANS TESTING THE PRIVATE HEALTH INSURANCE OFFSET"

Transcription

1 TAX IN PRACTICE MEANS TESTING THE PRIVATE HEALTH INSURANCE OFFSET

2 ABOUT PRACTISING TAX Practising Tax is a specialist tax information provider. Practising Tax is a team of passionate tax professionals with diverse experience ranging from Big 4 accounting firms, top tier law firms, private practice, ATO and tax education providers. Practising Tax is unrivalled in the quality, accuracy and approachability of its product. We pride ourselves on ensuring that our clients get the most up-to-date, easy to understand and practical tax information available. CONTACT DETAILS PO Box 6152 Hawthorn VIC 3122 Ph: (03) Fax: (03) Practising Tax Pty Ltd. Except as permitted by the Copyright Act 1968, these materials must not be reproduced in whole or in part without the express written consent of Practising Tax Pty Ltd. These materials are intended to be used as a guide only. They should not be relied upon as a substitute for professional advice regarding actual facts or circumstances. Practising Tax Pty Ltd, its employees and agents do not accept any liability for any injury, loss or damage resulting from any person acting, or refraining to act, in reliance on all or part of these materials.

3 TABLE OF CONTENTS MEANS TESTING THE PRIVATE HEALTH INSURANCE REBATE... 1! PRIVATE HEALTH INSURANCE INCENTIVE TIERS... 1! CALCULATING THE PRIVATE HEALTH INSURANCE REBATE... 3! CLAIMING THE PRIVATE HEALTH INSURANCE REBATE... 11! COMPLETING THE INDIVIDUAL TAX RETURN... 11! Page i

4

5 MEANS TESTING THE PRIVATE HEALTH INSURANCE REBATE The private health insurance rebate provides a reduction in the cost of private health insurance premiums for people who are eligible for Medicare and who have a complying health insurance policy. The Fairer Private Health Insurance Incentives Act 2012 amended various Acts to implement three private health insurance incentive tiers. The impact of the three private health insurance incentive tiers is, among other things, to reduce the amount of private health insurance rebate an eligible taxpayer with a complying private health insurance policy is entitled to when they have income for surcharge purposes above the relevant Medicare levy surcharge threshold. Private health insurance incentive tiers The private health insurance incentive tiers operate to means test the private health insurance rebate. The table below summaries the impact of the three private health insurance incentive tiers: Page 1

6 Income for surcharge purposes ( ) 1 Private health insurance rebate Singles Families 2 Base $84,000 or less $168,000 or less 30 percent of the premium if the oldest person on the policy is less than 65 years old 35 percent of the premium if the oldest person on the policy is between 65 and 69 years old 40 percent of the premium if the oldest person on the policy is 70 years old or over Tier 1 $84,001 - $97,000 $168,001 - $194, percent of the premium if the oldest person on the policy is less than 65 years old 25 percent of the premium if the oldest person on the policy is between 65 and 69 years old 30 percent of the premium if the oldest person on the policy is 70 years old or over Tier 2 $97,001 $130,000 $194,001 - $260, percent of the premium if the oldest person on the policy is less than 65 years old Tier 3 $130,001+ $260,001+ Nil 15 percent of the premium if the oldest person on the policy is between 65 and 69 years old 20 percent of the premium if the oldest person on the policy is 70 years old or over 1 Based on In future years, the singles thresholds will be indexed to average weekly ordinary time earnings and increased in $1,000 increments (rounding down). The families threshold will be double the relevant singles threshold. 2 For families with more than one dependant child, the relevant threshold is increased by $1,500 for each child after the first. Page 2

7 Calculating the private health insurance rebate The following methodology can be used to determine a taxpayer s private health insurance rebate entitlement and the balance (if any) of the entitlement (i.e. the amount to be refunded to the taxpayer or the amount that must be repaid by the taxpayer to the ATO). Step Step One Step Two Step Three Step Four Step Five Conclusion: Description Calculate your share of the premium for the policy (a) Determine which threshold applies singles or families (b) Calculate income for surcharge purposes (or combined income for surcharge purposes) (c) Determine the appropriate PHIR rate Determine your rebate entitlement: Rebate entitlement = Step 1 amount x Step 2c rate Calculate rebate received Minus the Step 4 amount from the Step 3 amount If the Step Five amount is positive: Taxpayer is refunded the Step Five amount If the Step Five amount is zero: Taxpayer does not receive any more rebate as they have received their full entitlement If the Step Five amount is negative: Taxpayer must repay the Step Five amount as they have claimed more than their actual entitlement It can be seen that, in working out the amount of rebate to which a particular taxpayer is entitled, a number of questions need to be answered about that taxpayer s circumstances, including: 1. What is the taxpayer!s share of the premium for the policy? 2. Which income threshold applies to the taxpayer the threshold for singles or the threshold for couples/families? 3. What is the taxpayer!s income for surcharge purposes? Page 3

8 What is the taxpayer s share of the premium for the policy? Important: This question effectively determines which taxpayer(s) is entitled to the rebate, and to what extent. The taxpayer s share of the rebate entitlement depends on whether there is more than one adult insured under the policy: where there is only one adult insured under the policy that person is entitled to apply the relevant rebate percentage to the entire premium amount; where there is more than one adult insured under the policy each person is entitled to apply the relevant rebate percentage to the premium amount divided by the number of adults insured under the policy. Singles Where the taxpayer is the only adult insured under a singles policy, they must apply the relevant rebate percentage to the entire premium for the policy. Couples (with or without children) Each member of a couple insured under the same policy must apply the relevant rebate percentage to 50 percent of the premium for the policy (regardless of which member actually paid the premium). Note: Persons that are married on the last day of the income year, and are insured under the same policy, can elect to claim the private health insurance tax offset on behalf of their partner, such that they will apply the relevant rebate percentage to the entire premium for the policy (rather than 50 percent as is the normal rule). The choice must be made in the person's tax return at year end. Where such a choice is made, the other partner will not be entitled to any rebate. (Section ) Single parent family The adult in a single parent family must apply the relevant rebate percentage to the entire premium for the policy. Page 4

9 Multiple adults (not coupled) Each adult insured under a policy must apply the relevant rebate percentage to the amount determined by dividing the premium for the policy by the number of such adults. Dependant child only The parents of children insured under a dependant child only policy must apply the relevant rebate percentage to 50 percent of the premium for the policy. However, if the parents of the child or children are not married, the person who pays the premium must apply the relevant rebate percentage to the entire premium. Important: It can be seen from the above that entitlement to the rebate does not depend on whether, and to what extent, the taxpayer has incurred an amount in respect of the policy (with the exception of unmarried parents in respect of a dependant child only policy). It follows that a rebate might be available to a particular individual even if they have not incurred any amount in respect of the policy i.e. they have not paid any of the premiums. Example Felix and Jemima are divorced. They are both under 65 years old and have no children together. Felix has income of $100,000 and Jemima has income of $150,000. They each have their own complying private health insurance policy and both nominate a 30 percent premium reduction. It turns out that Felix is a tier 2 earner, and is therefore entitled to a private health insurance rebate of only 10 percent. As such, Felix must pay back 20 percent of the rebate entitlement he claimed as a premium reduction. It turns out that Jemima is a tier 3 earner, and is therefore not entitled to any private health insurance rebate. As such, Jemima must pay back the entire rebate entitlement she claimed as a premium reduction. What if Jemima pays the cost of Felix!s private health insurance policy as required under their divorce agreement? Each adult covered by a policy is entitled to the private health insurance rebate for their share of the policy, regardless of who pays for the policy. Even if Jemima pays the cost of Felix!s policy, she can claim only a rebate for the premium paid on her policy. This also means that Felix is liable for the overpaid private health insurance rebate, notwithstanding that he did not pay for the policy. Page 5

10 Which income threshold applies to the taxpayer the threshold for singles or the threshold for families? Each adult on a private health insurance policy is income tested to determine their private health insurance entitlement rebate. An individual s circumstances (e.g. their marital status, whether they have children etc.) will impact whether the individual is income tested under the single tier thresholds or the family tier thresholds. Key concept Contributing to the maintenance of a dependant child or sibling Whether a taxpayer must look to the income thresholds for singles or the income thresholds for families depends, among other things, on whether the taxpayer has contributed to the maintenance of a dependant child or sibling at some stage during the year. A taxpayer will have contributed to the maintenance of a dependant child or sibling for these purposes where, on any day in the financial year: they have contributed in a substantial way to the maintenance of that child or sibling;* the person being maintained is: a person who is under 18 years old; or a dependant child under the rules of the private health insurer that is not 25 years old or over, and who does not have a partner; the child is either: the taxpayer!s child (including adopted child, step-child, ex-nuptial child or a child of the person!s spouse); or the taxpayer!s sibling (including half brother or sister, adoptive brother or sister, step brother or sister, or foster brother or sister) who is dependant on the taxpayer for economic support #. According to the Explanatory Memorandum to the Fairer Private Health Insurance Incentives Act 2011: * An individual will be contributing to the maintenance of a child if they are providing substantial material support to that child on a regular or ongoing basis there is no requirement that the child reside with the individual. # To be dependent on a person for economic support, a sibling must look to that person for their care and financial wellbeing in a general sense, not merely on particular occasions. Merely looking after a sibling temporarily (e.g. while the sibling's principal care-giver is away) is not sufficient to constitute dependency. Therefore the requisite dependency relationship will rarely occur in practice, and usually will only exist where there is no-one else (for example, a parent) who has general day-to-day care of the dependent sibling. Page 6

11 Single adults Where a single adult meets both of the following conditions that individual s entitlement to the private health insurance rebate will be determined based on the single tier thresholds: the individual is single (i.e. not married or in a de-facto relationship) as at 30 June of that income year; and the individual has not contributed to the maintenance of a dependant child or sibling on any day in the financial year. Note: It can be seen that individuals who have separated from their spouses during the year and have not contributed to the maintenance of a dependant child or sibling at any stage during the year will compare their income for surcharge purposes to the tiers for singles. Couples (with or without children) Where individuals are married or in a de-facto relationship on the last day of the year (regardless of whether they have children), their combined income for surcharge purposes will be used to determine their eligibility for the private health insurance rebate, based on the family income thresholds (increased by $1,500 for each dependant child after the first). Single parent family Where a single adult contributes in a substantial way to the maintenance of one or more dependant children or siblings, that individual s entitlement to the private health insurance rebate will be determined based on the family income threshold (increased by $1,500 for each dependant child after the first). Multiple adults (not coupled) Each insured adult who is not otherwise married or in a de facto relationship, is income tested according to their own circumstances (either based on the single or family threshold). It follows that there may be different outcomes for each adult covered by the policy. Dependant child only As outlined above married (or de facto) parents of a child (or children) insured under a dependant child only policy are entitled to claim the rebate on the child (or children s) behalf, to the extent of 50 percent each. In that case the combined income of the parents is tested against the family income threshold. Page 7

12 Where the parents of the child are not married or in a de-facto relationship, the payer of the premium in respect of a dependant child only policy is entitled to claim the rebate (also outlined above). In that case, the payer is income tested with respect to the family tier thresholds. What is the taxpayer s income for surcharge purposes? The income test for the private health insurance rebate is income for surcharge purposes. Income for surcharge purposes is calculated as the sum of: taxable income (including the net amount on which family trust distribution tax has been paid); total reportable fringe benefits, as reported on the payment summary; total net investment loss (includes both net financial investment loss and net rental property loss); and reportable super contributions (includes both reportable employer super contributions and deductible personal super contributions), reduced by any taxed element of a super lump sum, other than a death benefit, that does not exceed the low rate cap on super lump sum benefits (if aged 55 to 59 years). Warning: The income test for the private health insurance rebate is not the same as the income test for Medicare levy surcharge purposes. Unlike the income test for Medicare levy surcharge purposes, the income test for the private health insurance rebate does not include exempt foreign employment income. Single adult A single adult simply needs to determine their own income for surcharge purposes for the financial year, to determine which tier they are in. Single parent family A single person who contributes to the maintenance of a dependant child or student must determine their own income for surcharge purposes to determine which tier they are in. Page 8

13 Note: If both (separated or divorced) parents contribute to the maintenance of the same child, each parent is income tested separately based on the family income threshold. This is to be contrasted with the requirement that married parents combine their income before being assessed against the family income threshold. Couples (with or without children) A married or de facto couple must combine their income for surcharge purposes in order to determine which family tier they are in. Multiple adults (not coupled) Where multiple adults are covered by a joint private health insurance policy, each adult must determine their income for surcharge purposes based on whether they are, independently of each other, single or a member of a couple or family. Dependant child only As outlined above, the individual (or individuals) entitled to the rebate in respect of a dependent child only policy depends on whether the parents of the children are married or in a de facto relationship: where the parents are married or in a de facto relationship and therefore each entitled to 50 percent of the rebate their income must be combined for the purposes of determining which family tier they are in; where the parents are separated or divorced such that the person who pays the premium for the policy is entitled to the rebate that person s income alone, or combined income if they have remarried is compared against the family thresholds. Summary The following table (reproduced from the Explanatory Memorandum to the Fairer Private Health Insurance Incentives Act 2011) summarises who is eligible to claim the rebate, how much they are eligible for and who is income tested. Page 9

14 Persons covered Who is eligible to claim the rebate? How much are they eligible for? Who is income tested? Single adult Single adult on the policy Whole rebate Single adult on the policy with respect to the single tier thresholds. Single parent family Single parent on the policy Whole rebate Single parent on the policy with respect to the family tier thresholds. The thresholds increase by $1,500 for each child after the first. Couple/family Both adults on the policy. Each is entitled to one half of the rebate. One member of the couple may elect to receive the benefit on behalf of their spouse. Both adults on the policy with respect to the family tier thresholds. The thresholds increase by $1,500 for each child after the first. Multiple adults (not coupled) All adults on the policy. Each is entitled to a rebate based on their share of the policy. This is calculated by dividing the total cost of the policy by the number of adults covered. Each adult is income tested separately with respect to their own tier (which may be a single tier or couple/family tier as appropriate). Dependant child (children) only (i) The parents of the children covered. (ii) If the parents of the children are not a couple, then the person who pays for the policy, provided the payer is not a dependant child. (i) Each parent is entitled to a rebate based on their share of the policy. This is calculated by dividing the total cost of the policy by the number of parents. One parent may elect to receive the benefit on behalf of his or her spouse. (i) The parents with respect to the family tier thresholds. (ii) The payer, provided the payer is not a dependant child, income tested with respect to the family tier thresholds. (ii) The payer is entitled to the whole rebate. Page 10

15 CLAIMING THE PRIVATE HEALTH INSURANCE REBATE Refundable tax offset or tax liability? The amount of an individual s private health insurance rebate entitlement will be determined when lodging their tax return. A taxpayer will receive a refundable tax offset if they have not received their full private health insurance rebate as a premium reduction. The tax offset will be listed on the taxpayer s notice of assessment. Tip: In some circumstances it may be necessary to lodge a tax return for no reason other than to claim the tax offset (see illustration below). Where a taxpayer has claimed too much private health insurance rebate, the ATO will recover the amount as a tax liability. The liability will be listed on the taxpayer s notice of assessment as Excess private health insurance refund or reduction (rebate reduced). Completing the individual tax return The private health insurance policy details item of the individual tax return must be completed if at any time during the income year: the taxpayer was covered by a private health insurance policy; or the taxpayer paid for a dependant child-only policy. A private health insurance statement is needed to complete the Private health insurance policy details item. Each adult covered by a private health insurance policy will receive their own private health insurance statement from the insurer. Page 11

16 The labels on the private health insurance statement have the following meaning: Label Title Meaning B Health insurer ID Unique code that identifies the private health insurer issuing the private health insurance statement C Membership number Membership number that is attributed to the private health insurance policy J K Your share of premiums paid in the financial year Your share of Australian Government rebate received The policy holder!s share of the premium paid for the private health insurance policy The policy holder!s share of the private health insurance rebate received as a premium reduction L Benefit code Reflects the age of the oldest person covered by the private health insurance policy: Code 30: Oldest person on policy is aged under 65 years Code 35: Oldest person on policy is aged between 65 and 69 years Code 40: Oldest person on policy is aged 70 or over Tip: The labels on the private health insurance statement match the labels in the Private health insurance policy details item of the individual tax return. A tax claim code will also be required to complete the Private health insurance policy details item. The tax claim code directs the ATO to the applicable threshold (i.e. single or family), or whether no rebate calculation is required (i.e. spouse or de-facto is claiming the rebate, or dependant child). The following table summarises the valid tax claim codes, what each code represents and the threshold that will be applied by the ATO in relation to each code. Page 12

17 Taxpayer!s status Tax claim code to use Threshold to be applied by the ATO Single adult Taxpayer single on 30 June 2013 and had no dependant Single parent Claiming rebate entitlement Taxpayer is a single parent on 30 June 2013: with a dependant child or children 3 ; or with a dependant sibling; or that pays the premium for a dependant child only policy. Married or de-facto claiming their own share of the rebate entitlement Taxpayer had: a spouse on 30 June 2013; a spouse who died during the 2013 income year and taxpayer did not have another spouse before 30 June 2013; taxpayer is claiming their share of the rebate entitlement in relation to the policy; or the taxpayer is claiming for a dependant child only policy. A B C Single Family Family 3 A taxpayer must contribute to the substantial maintenance of the dependant child for them to be considered a dependant child of the taxpayer for private health insurance purposes. Page 13

18 Taxpayer!s status Married or de-facto claiming a spouse!s share of the rebate entitlement Taxpayer: had a spouse on 30 June 2013; had a spouse who died during the 2013 income year and taxpayer did not have another spouse before 30 June 2013; is covered by the same complying private health insurance policy for the same premium payments and for the same period of time; has claimed their own share of the rebate entitlement using claim code C; and is claiming their spouse!s share of the rebate entitlement in relation to the policy. Married or de-facto spouse is claiming the taxpayer!s share of the rebate entitlement Taxpayer: had a spouse on 30 June 2013; is covered by the same complying private health insurance policy for the same premium payments and for the same period of time; spouse is claiming their share of the rebate entitlement in their tax return. Dependant child Taxpayer is covered by private health insurance policy as a dependant child (as determined by the rules of the private health insurer). Tax claim code to use D E F Threshold to be applied by the ATO Family No calculation required as choice has been made for spouse to claim taxpayer!s share of tax offset (if any) No threshold applicable. No calculation required. Page 14

19 Completing the individual tax return Illustrations Single adults Where an individual is single (i.e. not married or in a de-facto relationship) as at 30 June of that income year and has had no dependants during the year, the appropriate tax claim code to be used in the Private health insurance policy details item of the individual tax return is tax claim code A. This tax claim code advises the ATO to income test the individual based on the single tier thresholds. Example Nicole is 40 years old and single. The total cost of her private health insurance policy is $2,500. Nicole nominates a 10 percent premium reduction as she expects to receive a promotion with income of $120,000, which would put her in the tier 2 income threshold. Unfortunately Nicole does not receive the promotion she is expecting. Her income for surcharge purposes is calculated as only $90,000. Nicole!s income is within the tier 1 income threshold meaning she is entitled to a 20 percent private health insurance rebate of $500 ($2,500 x 20%). As Nicole received only a $250 ($2,500 x 10%) premium reduction from her insurer, she receives an additional $250 ($500 - $250) as a refundable tax offset when she lodges her tax return. Single parent When an individual is a single parent, the appropriate tax claim code to be used in the Private health insurance policy details item of the individual tax return is tax claim code B. This tax claim code advises the ATO to income test the individual based on the family tier thresholds. Page 15

20 Example Charlotte and Oliver are divorced. Together they are the parents of a five-year old daughter. Charlotte has income for surcharge purposes of $60,000 and Oliver has income for surcharge purposes of $110,000. (a) Charlotte and Oliver have agreed to shared-custody of their daughter. They also share all of her living costs. Both Charlotte and Oliver are income tested separately under the family threshold as both have contributed in a substantial way to the maintenance of a dependant child on a regular or ongoing basis during the income year. Neither Charlotte not Oliver will be assessed as tier earners as neither has income that exceeds the family tier thresholds. As such, both Charlotte and Oliver will receive a private health insurance tax offset of 30 percent of the premium on each of their insurance policies. (b) Charlotte has sole custody of their daughter with Oliver providing little maintenance or support. Charlotte has a family health insurance policy that covers herself and her daughter. The total cost of the policy is $5,000 but she has received a 30 percent premium reduction and paid $3,500 for the policy as a result. Oliver has a singles health insurance policy. The total cost of the policy is $2,500 but he received a 10 percent reduction and paid $2,250 for the policy as a result. Charlotte is income tested against the family income threshold as she has contributed in a substantial way to the maintenance of a dependant child on a regular or ongoing basis during the income year. Charlotte will not be assessed as a tier earner as her income does not exceed any of the family tier thresholds. As such, she is entitled to a private health insurance rebate of 30 percent of $5,000. Oliver is income tested against the single income thresholds as he has not contributed in a substantial way to the maintenance of a dependant child on a regular or ongoing basis during the income year. Oliver is assessed as a tier 2 earner and will receive a private health insurance tax offset of 10 percent of $2,500. Page 16

21 Couples Couples that are married or in a de-facto relationship on the last day of the income year, and are covered by the same health insurance policy can: each claim their own share of the rebate entitlement; or make a choice for one member of the couple to receive the offset entitlement on behalf of their partner. Each claiming their own share of the rebate entitlement Where individuals are married or in a de-facto relationship on the last day of the year and are each claiming their own share of the private health insurance rebate entitlement, the appropriate tax claim code to be used in the Private health insurance policy details item of the individual tax return is tax claim code C. This tax claim code advises the ATO to income test the individuals together based on the family tier thresholds. Example Michael and Angela are in a de-facto relationship. They are both in their thirties and have a couple!s health insurance policy. Michael has income for surcharge purposes of $50,000 and Melanie has income for surcharge purposes of $60,000. As they are married at the end of the income year, they are assessed on the family income threshold. Michael and Angela will not be assessed as tier earners because their combined income does not exceed the family tier thresholds. As such, they are each entitled to receive half of a 30 percent private health insurance tax offset. Page 17

22 Example Joseph and Melanie have been married since April. Joseph has a complying health insurance policy, the total cost of which is $5,000. He has nominated a 10 percent premium reduction and has paid $4,500 for his policy as a result. Melanie does not have private health insurance. Joseph has income for surcharge purposes of $130,000 and Melanie has income for surcharge purposes of $50,000. As they are married at the end of the income year, they are assessed against the family income threshold. This puts Joseph and Melanie in the tier 1 income threshold. The rebate under tier one where the oldest person on the policy is aged under 65 years old is 20 percent of the total cost of the policy. As Joseph was eligible for a $1,000 premium reduction ($5,000 x 20%), but claimed only a 10 percent reduction, he is eligible for a refundable tax offset of 10 percent ($500) when he lodges his return. Melanie is not entitled to a rebate at all because she does not have private health insurance. Claiming the rebate for a spouse Couples that are married or in a de-facto relationship on the last day of the income year, and are covered by the same health insurance policy can make a choice for one member of the couple to receive the offset entitlement on behalf of their partner. In this case the appropriate tax claim code is: code C for taxpayer s individual rebate claim; code D for the rebate claim on behalf of the taxpayer s spouse. Page 18

23 Example Jack and Jill live together as a couple and share a complying health insurance policy. They are both under 65 years old. The total cost of their policy is $5,000 but they have received a 30 percent premium reduction and paid $3,500 for their policy as a result. Jack has income for surcharge purposes of $130,000 and Jill has income for surcharge purposes of $50,000, which puts Jack and Jill in the tier 1 income threshold. The rebate under tier one where the oldest person on the policy is aged under 65 years old is 20 percent of the total cost of the policy. As Jack and Jill were only eligible for a $1,000 premium reduction ($5,000 x 20%), they incur a $500 liability ($1,000 - $1,500) of which they each have a 50 percent share (i.e. $250). Jack and Jill agree that Jack will claim both Jill!s share of rebate entitlement and his own. As such, a $500 liability will be listed on Jack!s notice of assessment as an Excess private health insurance refund or reduction (rebate reduced). Completing Jack!s tax return Spouse claiming taxpayer s share of the rebate Where a taxpayer agrees to allow their spouse to claim their share of the private health insurance rebate in the spouse s return (see above) and that person is lodging their own tax return, it will be necessary to complete the private health insurance section of the tax return. The appropriate tax claim code in these circumstances is tax claim code E. Page 19

24 Example Jill has agreed that Jack can claim her share of the private health insurance rebate in his return (see example above). Jill will be required to complete the private health insurance rebate section of her own tax return as follows: Spouses with different health insurance policies Spouses with different health insurance policies must each claim their own share of the rebate entitlement in their respective tax returns. That is, one spouse cannot claim a private health insurance rebate on behalf of the other spouse if the spouses hold separate private health insurance policies. The appropriate tax claim code in these circumstances is tax claim code C. Page 20

25 Example Belinda and Thomas are married. Belinda is aged 30 and Thomas is aged 31. Belinda has income for surcharge purposes of $130,000 and Thomas has income for surcharge purposes of $50,000, which puts them in the tier 1 income threshold for families. Having been married for a number of years now, they have decided to start planning for a family. They have decided to take out different private health insurance policies to suit each of their individual needs. Belinda!s policy provides her with the highest level of cover (which includes pregnancy cover). The total cost of her policy is $3,750 but she has received a 30 percent premium reduction and paid $2,625 for her policy as a result. Thomas!s policy on the other hand provides him with basic cover. The total cost of his policy is $1,250 but he has received a 30 percent premium reduction and paid $875 for his policy as a result. The rebate under tier one where the oldest person on the policy is aged under 65 years old is 20 percent of the total cost of the policy. As Belinda and Thomas have different private health insurance rebates, they must each claim their own individual rebate entitlement. Belinda As Belinda was eligible for only a $750 premium reduction ($3,750 x 20%), she incurs a $375 liability ($750 - $1,125). As such, a $375 liability will be listed on Belinda!s notice of assessment as an Excess private health insurance refund or reduction (rebate reduced). Thomas As Thomas was eligible for only a $250 premium reduction ($1,250 x 20%), he incurs a $125 liability ($250- $375). As such, a $125 liability will be listed on Thomas!s notice of assessment as an Excess private health insurance refund or reduction (rebate reduced). Page 21

26 Lodging a tax return for no reason other than to claim the rebate In some circumstances it may be necessary for a taxpayer to lodge a tax return for no reason other than to claim the private health insurance rebate. This will be the case where the taxpayer is entitled to claim the private health insurance rebate but has not claimed any or all of the rebate from their private health insurer as a premium reduction and: the taxpayer does not have a spouse; the taxpayer has a spouse but the spouse is also not required to lodge a tax return; or the taxpayer has not agreed to allow their spouse to claim their share of the rebate in the spouse s tax return. Example Julia is single, under 60 years of age and the only adult covered by her private health insurance policy. Julia is not required to lodge a tax return for the year. Julia!s private health insurance provider requires all policy holders to nominate their rebate level. As Julia did not nominate her level of rebate she did not receive a premium reduction. The total cost of her policy is $2,500. As Julia!s income for surcharge purposes is below the tier one amount, her private health insurance rebate entitlement is 30% of the cost of her health insurance policy. Julia must lodge a tax return to claim the private health insurance rebate of $750. Page 22

27 Dependant children covered by a policy The rebate in respect of a dependant child only policy is available to the one or both of the parents of the dependant child (depending on whether they are married or in a de facto relationship). Example Tim and Liz are married and together have an adult child Angela (aged 21). The total cost of their family policy is $5,000 but they have received a 30 percent premium reduction and paid $3,500 for their policy as a result. Jack has income for surcharge purposes of $100,000 and Jill has income for surcharge purposes of $60,000. Angela is studying a Bachelor of Biomedical Science on a full-time basis and has income for surcharge purposes of $10,000 working part-time as a lab-assistant. Under the rules of their private health insurer, Angela is classified as a dependant child. Because Angela is covered as a dependant child on the family policy, her income is not taken into consideration for the family income threshold. As such, Tim and Liz will not be assessed as tier earners as their income does not exceed any of the family tier thresholds. The rebate for the base level where the oldest person on the policy is aged under 65 years old is 30 percent of the total cost of the policy. Tim and Liz have claimed their full rebate entitlement of 30 percent and are therefore not entitled to a further offset or liable for excess private health insurance refund or reduction. Prepaid private health insurance Prior to the introduction of the private health insurance tiers, high income earners who were likely to have their rebate reduced from 1 July 2012 were encouraged to prepay their premium before 1 July 2012 to ensure that the non-means tested rebate applied for those premiums. Whilst there is no requirement for taxpayers who acted on this advice to repay any of the rebate, such taxpayers must nonetheless complete the private health insurance details in the individual tax return for Failure to do so may result in the taxpayer being charged Medicare levy surcharge (on the basis that an appropriate level of private hospital cover was not obtained). Page 23

28 Example Jimmy is a high-income earner. On the advice of his accountant, Jimmy paid for his entire private health insurance cover before 1 July 2012 (that is, he paid no premiums during ). By doing so, Jimmy ensured that the non-means test rebate would apply to his premium. Although he pre-paid his , he must nevertheless confirm that he had an appropriate level of private cover for the income year by completing the private health insurance section of his individual tax return. Failure to do so may result in a Medicare levy surcharge liability. Employer pays private health insurance on behalf of the employee Only adults covered by a private health insurance policy are entitled to claim the private health insurance rebate. This is the case regardless of who actually pays the premiums for the policy. Thus, where an employer pays a private health insurance policy on behalf of an employee, it is the employee (being the policy-holder) who is entitled to the rebate as a reduced premium. This means that the ATO will assess the employee on whether too much or too little rebate has been claimed. Page 24

29 Example Simon is 32 years old and single. His employer pays for the cost of his private health insurance policy. The total cost of his policy is $5,000 but Simon has nominated a 30% premium reduction meaning that his employer pays only $3,500 for his policy. Simon has income for surcharge purposes of $90,000 which puts him in the tier 1 income threshold. The rebate under tier one for singles where the oldest person on the policy is aged under 65 years old is 20 percent of the total cost of the policy. As Simon was eligible for only a $1,000 premium reduction ($5,000 x 20%), he must incur a $500 liability ($1,000 - $1,500) for the extra 10 percent rebate that he already claimed. As such, a $1,000 liability will be listed on Simon!s notice of assessment as an Excess private health insurance refund or reduction (rebate reduced). Page 25

Changes to private health insurance rebate and Medicare levy surcharge Introduction

Changes to private health insurance rebate and Medicare levy surcharge Introduction Changes to private health insurance rebate and Medicare levy surcharge Introduction For an explanation of terms used, see Definitions. From 1 July 2012, the private health insurance rebate and the Medicare

More information

Is private health insurance still relevant?

Is private health insurance still relevant? Is private health insurance still relevant? Clients with higher levels of income may wish to review health insurance cover if legislation is passed to reduce the private health insurance offset. But before

More information

RECENT INCOME TAX CHANGES

RECENT INCOME TAX CHANGES RECENT INCOME TAX CHANGES Increased Medicare Levy Low Income Thresholds The Medicare Levy low-income thresholds for families and dependent child-student component of the threshold have been changed to

More information

Rates of Tax 2011/12 Resident Individuals

Rates of Tax 2011/12 Resident Individuals s of Tax 2011/12 Resident Individuals The following rates apply to individuals who are residents of Australia for tax purposes for the entire income year. 1 Tax Payable 2, 3 0 6,000 Nil 6,001 37,000 15

More information

Private health insurance policy details

Private health insurance policy details Private health insurance policy details PRIVATE HEALTH INSURANCE YOU NEED TO KNOW The information on this page will help you complete Private health insurance policy details on page 4 of your tax return.

More information

Reliance Super. Taxation Supplement. 14 March 2014. a membership category of Maritime Super

Reliance Super. Taxation Supplement. 14 March 2014. a membership category of Maritime Super Taxation Supplement 14 March 2014 Contents Tax on contributions 2 Tax on rollovers 3 Tax on investment earnings 3 Tax on super benefits 3 Spouse tax offset 7 Tax deductions for the self-employed 7 Low

More information

Contributions are taxed differently depending on whether you are making contributions to a taxed or untaxed fund.

Contributions are taxed differently depending on whether you are making contributions to a taxed or untaxed fund. Tax and super Issue Date: 1 July 2015 SUP E R ANNUATION The information in this document forms part of the Product Information Booklets for GESB Super and West State Super, each dated 1 July 2015. You

More information

Rates of Tax 2013/14 Resident Individuals

Rates of Tax 2013/14 Resident Individuals July Supplement 2014 Rates of Tax 2013/14 Resident Individuals The following rates apply to individuals who are residents of Australia for tax purposes for the entire income year. 1 Tax Payable 2,3 0 18,200

More information

Contributions are taxed differently depending on whether you are making contributions to a taxed or untaxed fund.

Contributions are taxed differently depending on whether you are making contributions to a taxed or untaxed fund. Tax and super GESB Super and West State Super SUP E R ANNUATION Important note The information in this document forms part of the Product Information Booklets for GESB Super and West State Super, each

More information

RECENT INCOME TAX CHANGES

RECENT INCOME TAX CHANGES RECENT INCOME TAX CHANGES Financial Institution Details Required From 1 July 2013, when preparing your income tax returns we will need to include your nominated Australian bank account details when a refund

More information

Tax return for individuals 2015 1 July 2014 to 30 June 2015

Tax return for individuals 2015 1 July 2014 to 30 June 2015 Use Individual tax return instructions 2015 to fill in this tax return n Print clearly using a black pen only n Use BLOCK LETTERS and print one character in each box S M I T H S T Individual information

More information

Super taxes, caps, payments, thresholds and rebates

Super taxes, caps, payments, thresholds and rebates Fact Sheet Super taxes, caps, payments, thresholds and rebates This fact sheet provides a useful one-stop reference guide to the tax rates, caps, thresholds and rebates that apply or are related to superannuation

More information

Tax Offsets 2014/15. Voice. Dependant Tax Offsets. 2014/15 Description. Max Offset $

Tax Offsets 2014/15. Voice. Dependant Tax Offsets. 2014/15 Description. Max Offset $ Tax Offsets 2014/15 Dependant Tax Offsets From 1 July 2012 (i.e., for the 2013 and later income years), the Dependant (Invalid and Carer) Tax Offset (DICTO) replaced eight dependent rebates (namely, the

More information

ARTI-IUR ROBINSON & HEDDER\VICKS 1996

ARTI-IUR ROBINSON & HEDDER\VICKS 1996 ARTI-IUR ROBINSON & HEDDER\VICKS 1996 THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA HOUSE OF REPRESENTATIVES MEDICARE LEVY AMENDMENT BILL (NO. 2) 1996 EXPLANATORY MEMORANDUM (Circulated by authority

More information

SUMMARY OF RATES AND THRESHOLDS 2015/16

SUMMARY OF RATES AND THRESHOLDS 2015/16 SUMMARY OF RATES AND THRESHOLDS 2015/16 CONTENTS Superannuation rates and thresholds Concessional contributions Non-concessional contributions Capital Gains Tax (CGT) cap amount Untaxed plan cap amount

More information

Tax on contributions. Non-concessional (after tax) contribution caps. Age at 1 July 2015 Annual cap Tax rate Under 65 $180,000* Nil 65-74 $180,000 Nil

Tax on contributions. Non-concessional (after tax) contribution caps. Age at 1 July 2015 Annual cap Tax rate Under 65 $180,000* Nil 65-74 $180,000 Nil This section summarises the main Federal Government taxes that apply to superannuation at the time of preparation. For more information, contact MyLife MySuper on 1300 MYLIFE (695 433) or the Australian

More information

Making the Most of Your Super

Making the Most of Your Super Making the Most of Your Super For many people, super is one of the best ways to accumulate wealth. The Government provides tax benefits to encourage people to fund their own retirement. With more Australians

More information

How super is taxed. About this document. Tax on concessional contributions. Concessional contribution tax rates from 1 July 2015:

How super is taxed. About this document. Tax on concessional contributions. Concessional contribution tax rates from 1 July 2015: How super is taxed Date of issue: 1 July 2015 mtaasuper.com.audate Phone: 1300December 362 415 2014 Fax: 1300 365 142 of issue: The information in this document forms part of the Product Disclosure Statement

More information

Superannuation death benefits

Superannuation death benefits Last updated: 7 September 2010 Last updated: 1 January 2011 Superannuation death benefits This TapIn Guide looks at the key tax issues relating to superannuation death benefits paid from a complying superannuation

More information

TAX TUTOR INSIDE IS YOUR TAX GUIDE FOR 2013-2014

TAX TUTOR INSIDE IS YOUR TAX GUIDE FOR 2013-2014 TAX TUTOR INSIDE IS YOUR TAX GUIDE FOR 2013-2014 PERSONAL TAX PERSONAL INCOME TAX RATES 2013-2014 & 2012-2013 Taxable Income $0 - $18,200 Nil Tax Payable $18,201 - $37,000 19% of excess over $18,200 $37,001

More information

How super is taxed. VicSuper FutureSaver Member Guide

How super is taxed. VicSuper FutureSaver Member Guide How super is taxed VicSuper FutureSaver Member Guide Date prepared 1 July 2015 The information in this document forms part of the VicSuper FutureSaver Product Disclosure Statement (PDS) dated 1 July 2015.

More information

Member guide. Superannuation and Personal Super Plan. The information in this document forms part of the Hostplus Product Disclosure Statement issued

Member guide. Superannuation and Personal Super Plan. The information in this document forms part of the Hostplus Product Disclosure Statement issued Member guide. Superannuation and Personal Super Plan Product Disclosure Statement The information in this document forms part of the Hostplus Product Disclosure Statement issued Section 7. How super is

More information

CPA AUSTRALIA TAX AND SOCIAL SECURITY GUIDE: 2014 2015

CPA AUSTRALIA TAX AND SOCIAL SECURITY GUIDE: 2014 2015 CPA AUSTRALIA TAX AND SOCIAL SECURITY GUIDE: 2014 2015 This guide is the initiative of the CPA Australia Retirement Savings Centre of Excellence. Information is current based on legislation as at 1 July

More information

CPA Australia Tax and Social Security Guide: 2013-2014

CPA Australia Tax and Social Security Guide: 2013-2014 CPA Australia Tax and Social Security Guide: 2013-2014 This guide is the initiative of the CPA Australia Retirement Savings Centre of Excellence. Information is current based on legislation as at 1 July

More information

CORPORATE NEWSLETTER

CORPORATE NEWSLETTER CORPORATE NEWSLETTER Summer 2014 Page 2 Corporate Newsletter - Summer 2014 CORPORATE NEWSLETTER - SUMMER 2014 Dear Reader, Welcome to our quarterly newsletter which will provide updates and reminders of

More information

Tax tips and tax return checklist

Tax tips and tax return checklist Tax tips and tax return checklist To help you complete your tax return, the following lists outlines the payments that are classified as income and those that are classified as expenses across a range

More information

Understanding Superannuation

Understanding Superannuation Understanding Superannuation Client Fact Sheet July 2012 Superannuation is an investment vehicle designed to assist Australians save for retirement. The Federal Government encourages saving through superannuation

More information

Year-end Tax Planning Guide - 30 June 2013 BUSINESSES

Year-end Tax Planning Guide - 30 June 2013 BUSINESSES Year-end Tax Planning Guide - 30 The end of the financial year is fast approaching. In the lead up to 30 June, this newsletter covers some of the year-end tax planning matters for your consideration. BUSINESSES

More information

SMSF Facts Sheet. July 2015

SMSF Facts Sheet. July 2015 SMSF Facts Sheet July 2015 Key Superannuation Rates and Thresholds - 2015/16 Contributions The tables below contain the amounts of concessional and non-concessional contributions you may make to your superannuation

More information

Medicare levy variation declaration

Medicare levy variation declaration individuals SEGMENT taxpayers AUDIENCE instructions and form FORMAT NAT 0929-07.2007 PRODUCT ID Medicare levy variation declaration Complete this declaration if you want to: n increase the amount withheld

More information

Private health insurance rebate and Medicare levy surcharge changes. June 2012

Private health insurance rebate and Medicare levy surcharge changes. June 2012 June 2012 IN THIS ISSUE Private health insurance rebate and Medicare Levy surcharge changes 30 June is around the corner Tax Changes affecting Small businesses Changes to the timing of Trust resolutions

More information

receive the full amount of any of the qualifying benefits and allowances for the full year, and have no other taxable income.

receive the full amount of any of the qualifying benefits and allowances for the full year, and have no other taxable income. Page 1 of 9 Guide to tax offsets Overview Tax offsets (sometimes also referred to as rebates) directly reduce the amount of tax you must pay. They are not the same as tax deductions. Deductions only reduce

More information

ASPECTS OF FINANCIAL PLANNING. Taxation implications of overseas residency. July 2012

ASPECTS OF FINANCIAL PLANNING. Taxation implications of overseas residency. July 2012 ASPECTS OF FINANCIAL PLANNING Taxation implications of More and more of our clients are being given the opportunity to live and work overseas. Before you make the move, it is worthwhile considering the

More information

Private health insurance policy details

Private health insurance policy details Private health insurance policy details If question 23 or 27 asked you to complete this item because you paid, or your employer paid for you, a premium for an appropriate private health insurance policy

More information

Tax on contributions. Concessional (before tax) contributions

Tax on contributions. Concessional (before tax) contributions This section summarises the main Federal Government taxes that apply to superannuation at the time of preparation. For more information, contact Catholic Super on 1300 655 002 or the Australian Taxation

More information

CPA AUSTRALIA TAX AND SOCIAL SECURITY GUIDE: 2015 2016

CPA AUSTRALIA TAX AND SOCIAL SECURITY GUIDE: 2015 2016 CPA AUSTRALIA TAX AND SOCIAL SECURITY GUIDE: 2015 2016 This guide is the initiative of the CPA Australia Retirement Savings Centre of Excellence. Information is current based on legislation as at 1 July

More information

Issued by T.I.S. Pty Ltd ABN 73 065 319 735 AFSL 247249

Issued by T.I.S. Pty Ltd ABN 73 065 319 735 AFSL 247249 The Transport Industry Superannuation Fund Insurance Guide Prepared and issued 1 July 2014 Issued by T.I.S. Pty Ltd ABN 73 065 319 735 AFSL 247249. This information in this guide forms part of the Product

More information

Dover Individual Income Tax Return Checklist

Dover Individual Income Tax Return Checklist Dover Individual Income Tax Return Checklist For the year ending (insert income year) 1. Advisor/Accountant Details Company/Firm name: Contact name: Contact email: Contact phone: 2. Client Details Full

More information

Employer guide for reportable employer superannuation contributions

Employer guide for reportable employer superannuation contributions Page 1 of 15 Employer guide for reportable employer superannuation contributions In the 2010-11 Federal Budget the government announced future changes to super. These changes, if passed by parliament,

More information

End of financial year planning tips May 2014

End of financial year planning tips May 2014 End of financial year planning tips May 2014 With the end of the financial year fast approaching, it is a good time to review financial planning strategies with a view to optimising your outcomes. This

More information

Contributions Fact Sheet

Contributions Fact Sheet Contributions Fact Sheet Product Disclosure Statement The information in this document forms part of the QIEC Super Product Disclosure Statement (PDS). This document is the Contributions Fact Sheet and

More information

Year-end Tax Planning Guide - 30 June 2014 BUSINESSES

Year-end Tax Planning Guide - 30 June 2014 BUSINESSES Year-end Tax Planning Guide - 30 The end of the financial year is fast approaching. In the lead up to 30 June, this newsletter covers some of the year-end tax planning matters for your consideration. BUSINESSES

More information

CLIENT FACT SHEET. If you are under age 65 you may make personal contributions to superannuation on your own behalf.

CLIENT FACT SHEET. If you are under age 65 you may make personal contributions to superannuation on your own behalf. CLIENT FACT SHEET July 2010 Understanding superannuation and superannuation contributions Superannuation is an investment vehicle designed to assist Australians in saving for their retirement. The Government

More information

Things could easily be improved without needing a rewrite of the whole tax system. Some of the major issues with income tax are

Things could easily be improved without needing a rewrite of the whole tax system. Some of the major issues with income tax are Simple Tax is Better Tax Submission to Re:think Better tax system, better Australia By Lorraine May 2015 Executive Summary The current tax system is needlessly complex. To some degree tax needs to be complex

More information

ADVANCE RETIREMENT SAVINGS ACCOUNT Annual Report for year ended 30 June 2014. Issued by BT Funds Management Limited ABN 63 002 916 458 AFSL 233724

ADVANCE RETIREMENT SAVINGS ACCOUNT Annual Report for year ended 30 June 2014. Issued by BT Funds Management Limited ABN 63 002 916 458 AFSL 233724 ADVANCE RETIREMENT SAVINGS ACCOUNT Annual Report for year ended 30 June 2014 Issued by BT Funds Management Limited ABN 63 002 916 458 AFSL 233724 CONTENTS Introduction... 1 Recent developments in superannuation...

More information

baggetta & co accountants financial planners self managed super funds 2013 Individual Tax Return Checklist

baggetta & co accountants financial planners self managed super funds 2013 Individual Tax Return Checklist baggetta & co accountants financial planners self managed super funds 2013 Individual Tax Return Checklist Provide all supporting documentation to substantiate your claims Such as copies of receipts, tax

More information

Tax deductible superannuation contributions

Tax deductible superannuation contributions Tax deductible superannuation contributions TB 35 TECHNICAL SERVICES ISSUED ON 29 OCTOBER 2014 ADVISER USE ONLY VERSION 1.1 Summary Employers and certain individuals can claim a tax deduction for contributions

More information

Private Health Insurance (PHI)

Private Health Insurance (PHI) Private Health Insurance (PHI) Proposed means testing not consistent with Community Rating 12 July 2011 On 7 July 2011, the Commonwealth government introduced legislation into Parliament to establish a

More information

A Financial Planning Technical Guide

A Financial Planning Technical Guide Insurance and Estate Planning A Financial Planning Technical Guide Securitor Financial Group Limited ABN 48 009 189 495 AFSL 240687 Contents Introduction 1 General insurance 1 Private health insurance

More information

Tax planning reminders for 30 June 2012

Tax planning reminders for 30 June 2012 Tax planning reminders for 30 June 2012 Keep your receipts!... 1 Government Co-contributions... 1 Personal deductible contributions... 3 Split super with your spouse... 3 Employer Superannuation Contributions...

More information

Managing the tax affairs of someone who has died

Managing the tax affairs of someone who has died Page 1 of 13 Managing the tax affairs of someone who has died Introduction This guide will help you finalise the tax affairs of a deceased person. It tells you what tax returns you may need to lodge and

More information

2015 Changes / Key Announcements

2015 Changes / Key Announcements 2015 Changes / Key Announcements Below is a summary of the changes to be aware of and announcements that will potentially affect you for the year ending 30 th June 2015 or will come into effect as of 1

More information

April update focusses on matters affecting individuals

April update focusses on matters affecting individuals April update focusses on matters affecting individuals UPDATE SNAPSHOT Medicare Levy Surcharge and Private Health Insurance Rebate Net Medical Expenses Tax Offset Superannuation guarantee rate Super contributions

More information

Private health insurance rebate: FAQs

Private health insurance rebate: FAQs Assurance in Numbers February 2014 Private health insurance rebate: FAQs By now, most people would know that the private health insurance rebate is being income-tested effectively meaning that if you have

More information

Guide for notice of intent to claim a tax deduction for personal super contributions 2014/2015

Guide for notice of intent to claim a tax deduction for personal super contributions 2014/2015 Guide for notice of intent to claim a tax deduction for personal super contributions 2014/2015 Under section 290-170 of the Income Tax Assessment Act 1997 Need Help? For more information about your eligibility

More information

2015 INDIVIDUAL TAX RETURN CHECK LIST

2015 INDIVIDUAL TAX RETURN CHECK LIST PARTNERS Chartered Accountants Bondi Junction office -Suite 1807, Level 18, Tower Two, 101 Grafton Street, Bondi Junction, 2022, NSW, Australia Hornsby Office- 237 Pacific Highway Hornsby NSW 2077 P O

More information

April 2015 IN THIS ISSUE

April 2015 IN THIS ISSUE April 2015 IN THIS ISSUE Medicare Levy Surcharge and Private Health Insurance Rebate Net Medical Expenses Tax Offset Superannuation guarantee rate Super contributions caps Changes to superannuation excess

More information

Fact Sheet Tax on Super 2009/10

Fact Sheet Tax on Super 2009/10 It pays to belong TM Key Focus A tax of 15% applies to concessional (i.e. before tax) contributions. All employer and salary sacrifice contributions will be taxed at the top marginal rate if your super

More information

TECHNICAL NOTE TRANSFERRING US 401K AND IRA ACCOUNTS TO AUSTRALIA

TECHNICAL NOTE TRANSFERRING US 401K AND IRA ACCOUNTS TO AUSTRALIA NetActuary.com.au Retirement Solutions Actuaries TECHNICAL NOTE TRANSFERRING US 401K AND IRA ACCOUNTS TO AUSTRALIA ITEM 1. Introduction and Overview 2. US Fund Withdrawals 3. Types of US Retirement Funds

More information

How super is taxed guide (AP.4)

How super is taxed guide (AP.4) How super is taxed guide (AP.4) Issued 1 January 2016 The information in this document forms part of the ESSSuper Accumulation Plan Product Disclosure Statement dated 1 January 2016. Contents Providing

More information

Federal Budget May 2016

Federal Budget May 2016 Federal Budget May 2016 BT Contents 1. Key points on Superannuation... 3 Lifetime cap for non-concessional superannuation contributions... 3 Reduction in threshold for additional 15% tax for high income

More information

How super works. MySuper. Member Booklet Supplement. 1 July 2015

How super works. MySuper. Member Booklet Supplement. 1 July 2015 Member Booklet Supplement How super works July 205 The information in this document forms part of the First State Super Member Booklets (Product Disclosure Statements) for: Employer Sponsored members dated

More information

Product Disclosure Statement

Product Disclosure Statement AMP Retirement Savings Account Product Disclosure Statement Contents 1. About AMP Retirement Savings Account 2. How super works 3. Benefits of investing with AMP Retirement Savings Account 4. Risks of

More information

Chapter 2. The Temporary Budget Repair Levy

Chapter 2. The Temporary Budget Repair Levy Chapter 2 The Temporary Budget Repair Levy 2.1 This chapter discusses the legislation introduced by the package of Temporary Budget Repair Levy (the Levy) bills. 2.2 The committee first gives a brief overview

More information

SALARY PACKAGING SUPERANNUATION GUIDE TO EMPLOYEES

SALARY PACKAGING SUPERANNUATION GUIDE TO EMPLOYEES SALARY PACKAGING SUPERANNUATION GUIDE TO EMPLOYEES Superannuation Introducing Salary Packaging Salary packaging has been made available to all staff of the University through the Enterprise Agreement process.

More information

Key Superannuation Rates and Thresholds

Key Superannuation Rates and Thresholds Key Superannuation Rates and Thresholds Concessional contributions cap Concessional contributions consist of: 1. Employer contributions including salary sacrifice contributions 2. Personal contributions

More information

Superannuation Co-Contributions

Superannuation Co-Contributions Superannuation Co-Contributions The superannuation co-contribution is a government measure to boost superannuation savings. If you earn less than $61,920 a year, make personal superannuation contributions

More information

2014/15 Key Superannuation Rates and Thresholds

2014/15 Key Superannuation Rates and Thresholds 2014/15 Key Superannuation Rates and Thresholds These are the key rates and thresholds that apply in relation to superannuation contributions and benefits, superannuation guarantee and co-contributions.

More information

Super and estate planning

Super and estate planning Booklet 4 Super and estate planning MAStech Smart technical solutions made simple Contents Introduction 01 Introduction 03 Making a start 04 What happens to your superannuation benefits after your death?

More information

Defence Bank Super Assured Retirement Savings Account

Defence Bank Super Assured Retirement Savings Account RETIREMENT SAVINGS ACCOUNT (RSA) Defence Bank Super Assured Retirement Savings Account Superannuation fee free. The way it should be for all Australians. General Information and Application Form Product

More information

Tax Rates & Thresholds Handy Guide

Tax Rates & Thresholds Handy Guide Tax Rates & Thresholds Handy Guide 2014/15 Income Year Issued August 2014 Taxation of Superannuation Benefits Superannuation benefits from a taxed source Age of recipient Lump Sum Income stream 60 and

More information

Contributing to your super

Contributing to your super SUP E R ANNUATION Contributing to your super GESB Super and West State Super ISSUE DATE: 1 July 2015 PREPARATION DATE: 26 June 2015 Government Employees Superannuation Board ABN 43 418 292 917 Contents

More information

2014/15 Budget. 1. Changes effective 1 July 2013 (i.e., 2013/14 income year)

2014/15 Budget. 1. Changes effective 1 July 2013 (i.e., 2013/14 income year) 2014/15 Budget 1. Changes effective 1 July 2013 (i.e., 2013/14 income year) 1.1 Medicare levy low income thresholds For 2013/14, the Medicare Levy low income thresholds will be as follows: Individuals

More information

IOOF Technical Advice Solutions Client strategies for advisers. Superannuation and death benefits in the Simpler Super environment.

IOOF Technical Advice Solutions Client strategies for advisers. Superannuation and death benefits in the Simpler Super environment. IOOF Technical Advice Solutions Client strategies for advisers Superannuation and death benefits in the Simpler Super environment Adviser use only IOOF Technical Advice Solutions Since 1 July 2007, the

More information

Smart strategies for reducing aged care costs 2012/13

Smart strategies for reducing aged care costs 2012/13 Smart strategies for reducing aged care costs 2012/13 Get the care you need at a lower cost Aged care costs can be very high and could increase as our population ages. The accommodation bond alone averages

More information

Adviser Tax Guide ONECARE 1 JULY 2014 ANZ WEALTH

Adviser Tax Guide ONECARE 1 JULY 2014 ANZ WEALTH Adviser Tax Guide ONECARE 1 JULY 2014 ANZ WEALTH This guide is current at 1 July 2014 and is subject to change. Updated information will be available free of charge from onepath.com.au or by calling 1800

More information

TAXATION UNIT TRUSTS - TAXATION TREATMENT. Paper CONTENTS

TAXATION UNIT TRUSTS - TAXATION TREATMENT. Paper CONTENTS TAXATION UNIT TRUSTS - TAXATION TREATMENT CONTENTS Page 1. Introduction To Unit Trusts... 3 2. Determination Of Unit Trust Profit... 3 3. Unit Trust Taxable Income... 3 4. Comparison To Partnerships...

More information

Private health insurance rebate: FAQs

Private health insurance rebate: FAQs Private health insurance rebate: FAQs By now, most people would know that the private health insurance rebate is being income-tested effectively meaning that if you have private health insurance, the rebate

More information

Superannuation. A Financial Planning Technical Guide

Superannuation. A Financial Planning Technical Guide Superannuation A Financial Planning Technical Guide 2 Superannuation Contents Superannuation overview 4 Superannuation contributions 4 Superannuation taxation 7 Preservation 9 Beneficiary nomination 9

More information

AUTOMOTIVE UPDATE. Trust distribution. Division 7A loan and unpaid present entitlement. Partner, Brisbane Tel: +61 7 3237 5744 mark.ward@bdo.com.

AUTOMOTIVE UPDATE. Trust distribution. Division 7A loan and unpaid present entitlement. Partner, Brisbane Tel: +61 7 3237 5744 mark.ward@bdo.com. AUTOMOTIVE UPDATE AUTOMOTIVE tax planning 2013 With another financial year end fast approaching, BDO s automotive team provides some guidance on practical measures to minimise your dealership s tax position

More information

CommInsure Corporate Insurance. Superannuation Trust. Annual Report 2013

CommInsure Corporate Insurance. Superannuation Trust. Annual Report 2013 CommInsure Corporate Insurance Superannuation Trust Annual Report 2013 Fund CommInsure Corporate Insurance Superannuation Trust ABN 49 968 181 565 R1072457 PO Box 1282 ALBURY NSW 2640 Phone: 1300 767 400

More information

2014 TAX RETURN INFORMATION HEALTH INSURANCE REBATE, MEDICARE LEVY SURCHARGE & MEDICAL EXPENSES REBATE

2014 TAX RETURN INFORMATION HEALTH INSURANCE REBATE, MEDICARE LEVY SURCHARGE & MEDICAL EXPENSES REBATE 2014 TAX RETURN INFORMATION HEALTH INSURANCE REBATE, MEDICARE LEVY SURCHARGE & MEDICAL EXPENSES REBATE The rules about tax and health expenditure are now extremely complex. A universal health insurance

More information

Insurance and estate planning. A Financial Planning Technical Guide

Insurance and estate planning. A Financial Planning Technical Guide Insurance and estate planning A Financial Planning Technical Guide 2 Insurance and estate planning Introduction 4 General insurance 4 Private health insurance 4 Personal insurance 5 Business insurance

More information

CHECKLIST TAX RETURN ATHANS&TAYLOR. Chartered Accountants

CHECKLIST TAX RETURN ATHANS&TAYLOR. Chartered Accountants ATHANS&TAYLOR Chartered Accountants 2015 TAX RETURN CHECKLIST With the end of financial year fast approaching, we have compiled a checklist regarding income expenses that need to be on hand for the preparation

More information

End of Year Income and Tax Planning Individuals - June 2013

End of Year Income and Tax Planning Individuals - June 2013 The tips below will assist you in your end of year income and tax planning strategies. These tips are not meant to be exhaustive nor applicable to each and every individual taxpayer. Further you should

More information

Superannuation and Residency Fact Sheet - October 2014

Superannuation and Residency Fact Sheet - October 2014 Superannuation and Residency Fact Sheet - October 2014 A change in residence has significant implications for superannuation. A number of issues arise when an individual relocates overseas whether temporarily

More information

2015 TAX RETURN INFORMATION HEALTH INSURANCE REBATE, MEDICARE LEVY SURCHARGE & MEDICAL EXPENSES REBATE

2015 TAX RETURN INFORMATION HEALTH INSURANCE REBATE, MEDICARE LEVY SURCHARGE & MEDICAL EXPENSES REBATE 2015 TAX RETURN INFORMATION HEALTH INSURANCE REBATE, MEDICARE LEVY SURCHARGE & MEDICAL EXPENSES REBATE The rules about tax and health expenditure are now extremely complex. A universal health insurance

More information

How super works. VicSuper FutureSaver Member Guide

How super works. VicSuper FutureSaver Member Guide How super works VicSuper FutureSaver Member Guide Date prepared 1 July 2015 The information in this document forms part of the VicSuper FutureSaver Product Disclosure Statement (PDS) dated 1 July 2015.

More information

The Expatriate Financial Guide to

The Expatriate Financial Guide to The Expatriate Financial Guide to Australian Tax Facts Australia Introduction Tax Year Assessment Basis Income Tax Taxation in Australia is mostly at a national/federal level with property taxes (council

More information

How super is taxed. Inside. Accumulation 1 and Spouse Account members. The University of Melbourne THIS DOCUMENT WAS PREPARED ON 1 OCTOBER 2015.

How super is taxed. Inside. Accumulation 1 and Spouse Account members. The University of Melbourne THIS DOCUMENT WAS PREPARED ON 1 OCTOBER 2015. How super is taxed Accumulation 1 and Spouse Account members The information in this document forms part of the UniSuper Accumulation 1 Product Disclosure Statement and UniSuper Spouse Account Product

More information

HEALTH INSURANCE HCF FAQs

HEALTH INSURANCE HCF FAQs HEALTH INSURANCE HCF FAQs What benefit is available through Member Advantage? Members receive a 5% discount off all current HCF hospital and extras products. What is the relationship between Member Advantage

More information

In a nutshell... From Issue 52, 2010-11 of Superannuation Quarterly, dated March 2011. ...the full article follows. Tax deductions for SMSFs

In a nutshell... From Issue 52, 2010-11 of Superannuation Quarterly, dated March 2011. ...the full article follows. Tax deductions for SMSFs From Issue 52, 2010-11 of Superannuation Quarterly, dated March 2011 In a nutshell... Tax deductions for SMSFs This article looks at various tax deductions that are available to a complying Self Managed

More information

Super contributions - too much super can mean extra tax Introduction

Super contributions - too much super can mean extra tax Introduction Super contributions - too much super can mean extra tax Introduction There are caps on the amount you can contribute to your superannuation each financial year that are taxed at lower rates. If you contribute

More information

Your Guide. to the Meridian. Personal. Super Plan. Product Disclosure Statement. Issued 1 January 2004 MPS 4

Your Guide. to the Meridian. Personal. Super Plan. Product Disclosure Statement. Issued 1 January 2004 MPS 4 Your Guide to the Meridian Product Disclosure Statement Issued 1 January 2004 Personal Super Plan MPS 4 What this Guide is about MPSuper Product Disclosure Statement This Guide was prepared and issued

More information

Product Disclosure Statement

Product Disclosure Statement Product Disclosure Statement MYSUPER AUTHORISATION NUMBER 72229227691044 1 July 2014 NESS Super, the industry fund to power your financial future inside 1 About NESS Super 2 2 How super works 2 3 Benefits

More information

SMSF insurance options and strategies

SMSF insurance options and strategies SMSF insurance options and strategies Agenda Will be looking at: Requirement to consider insurance Why hold insurance through an SMSF? Life Insurance Permanent Incapacity Temporary Incapacity. Requirement

More information

Taxation, social security and family assistance for

Taxation, social security and family assistance for Taxation, social security and family assistance for 2004 05 Introduction This publication provides a guide to the taxation treatment of social security and family assistance payments. It describes which

More information

uperannuation rates and thresholds as at 1 July 2016

uperannuation rates and thresholds as at 1 July 2016 TECHNICAL FACT SHEET uperannuation rates and thresholds as at 1 July 2016 Contributions to Super Low income superannuation contribution The Government has abolished Low Income Superannuation Contribution

More information

Smart strategies for your super

Smart strategies for your super Smart strategies for your super 2010 Make your super count Superannuation is still one of the best ways to accumulate wealth and save for your retirement. The main reason, of course, is the favourable

More information

Social Security. Social Security Payments and the Taxation System. Technical Series Number One

Social Security. Social Security Payments and the Taxation System. Technical Series Number One Social Security Social Security Payments and the Taxation System Technical Series Number One Social Security Payments and the Taxation System Technical Series No.1 Josh Polette (revised by Kate Chan) Social

More information