Tenbensel & Dee - Chartered Accountants

1. Deductions for study expenses for full-time students on youth allowance
If you receive youth allowance to undertake full time study, you can now claim a deduction for study expenses.
For income years 2007, 2008, 2009 and 2010, the ATO will advise eligible taxpayers that they will amend their tax assessments to include a deduction of $550 for each year. Where students wish to claim a greater amount, they must have records to support their claim.
You are eligible if you have lodged a tax return for each year, received youth allowance to study full time, not claimed a deduction for these expenses and paid tax.

2. Paid Parental Leave Scheme
The Paid Parental Leave Scheme commenced on 1 January 2011. Eligible working parents may be entitled to up to 18 weeks of government-funded pay at the national minimum wage, currently $570 a week before tax.

This is general information and requirements may vary depending on your circumstances.

For more detailed information regarding eligibility, information on how to make a claim, and publications for working parents and employers, visit www.familyassist.gov.au.

3. Superannuation clearing house
The government has introduced a superannuation clearing house available to businesses with less than 20 employees. You can find further information and register for this service at http://www.medicareaustralia.gov.au/super/index.jsp.

4. New reporting in 2010 Income Tax Returns for individuals
Several new labels have been included in the 2010 individual Income Tax Return, including:

   a. Reportable employer superannuation contributions
   b. Employee share scheme income
   c. Various labels relating to income tested payments (such as government

superannuation co-contribution, family tax assistance).

5. Electronic storage of TFN declarations
The ATO have confirmed that under Taxation Ruling TR 2005/9 employers can image and retain electronic copies of TFN declarations as an alternative to storing paper copies.

6. HECS-HELP benefit for eligible graduates
If you have a HELP debt relating to a teaching or nursing degree completed after 30 June 2009 and are working as a teacher or nurse, you may be eligible for a HECS-HELP benefit. For further information, refer to the HECS-HELP benefit section of the ATO website.

7. Same sex reform
From 1 July 2009, all couples and families are to be treated the same way for tax purposes, regardless of gender. For tax purposes, ‘spouse’ now includes a same sex partner. Consequently, calculation of tax offsets (such as medical expenses tax offset, education tax offset, senior Australian tax offset), medicare levy, medicare levy surcharge may be affected by your same sex partner’s income for the first time in your 2010 tax return.

8. Entrepreneurs’ tax offset proposed income test
From 1 July 2009, the entrepreneurs’ tax offset will be unavailable to taxpayers whose non-ETO income exceeds $70,000 for individuals and $120,000 for families.

9. Non commercial losses income test

From 1 July 2009, taxpayers with ‘non commercial’ business losses must satisfy an additional income test. In order to avoid deferring the loss to future years, such taxpayers must have other income of less than $250,000 as well as meeting one of the previous four tests (profits, assessable income, other assets, real property).

10. Superannuation
The concessional contributions cap for superannuation contributions for the 2009–10 financial year is $25,000 if you are under 50 years old on 30 June of the financial year. The transitional concessional contributions cap is $50,000, this applies to individuals who are 50 years old or over on 30 June 2010. This transitional concessional cap will expire on 30 June 2012.
In the 2010–11 Federal Budget the government announced that, from 1 July 2012, it will increase the concessional contribution cap to $50,000 for individuals who are 50 years old or over, where their total super balances are below $500,000. Under this measure, from 1 July 2012, the $50,000 cap will be extended permanently for individuals aged 50 or over with total superannuation balances of less than $500,000.

11. Self Managed Superannuation
The Cooper review recommended that art and collectibles should not be held as investments of a superannuation fund and recommended any SMSF currently holding art and collectibles as investments should divest them over a 5 year time period. During the 2010 federal election campaign, all political parties distanced themselves from this view. However, the Labor Party has said it will consult with industry and adopt an approach broadly consistent with the SMSF Professionals Association guidelines. The SPAA guidelines are relatively tight. Trustees of SMSFs with investments in art and collectibles should monitor this debate and contact our office for advice.

Disclaimer
This information is a general in nature and does not take into account particular situations. It does not constitute specific advice and should not be relied on as such. While we have taken reasonable care in preparation of this information, no responsibility is accepted for persons acting on this information.


	Home > News > Latest news Latest News 1. Deductions for study expenses for full-time students on youth allowance If you receive youth allowance to undertake full time study, you can now claim a deduction for study expenses. For income years 2007, 2008, 2009 and 2010, the ATO will advise eligible taxpayers that they will amend their tax assessments to include a deduction of $550 for each year. Where students wish to claim a greater amount, they must have records to support their claim. You are eligible if you have lodged a tax return for each year, received youth allowance to study full time, not claimed a deduction for these expenses and paid tax. 2. Paid Parental Leave Scheme The Paid Parental Leave Scheme commenced on 1 January 2011. Eligible working parents may be entitled to up to 18 weeks of government-funded pay at the national minimum wage, currently $570 a week before tax. The basic tests for eligibility are: You are the primary carer of newborn child or recently adopted child; You are an Australian resident; You have met the Paid Parental Leave Scheme work test; You have received no more than $15,000.00 in adjusted taxable income in the previous financial year; and Are on leave or not working from the time you become the child's primary carer. To meet the work test, you must have: Worked for at least 10 of 13 months prior to the birth or adoption of your child; and Worked for at least 330 hours in that 10 month period with no more than an eight week gap between consecutive working days. This is general information and requirements may vary depending on your circumstances. For more detailed information regarding eligibility, information on how to make a claim, and publications for working parents and employers, visit www.familyassist.gov.au. 3. Superannuation clearing house The government has introduced a superannuation clearing house available to businesses with less than 20 employees. You can find further information and register for this service at http://www.medicareaustralia.gov.au/super/index.jsp. 4. New reporting in 2010 Income Tax Returns for individuals Several new labels have been included in the 2010 individual Income Tax Return, including: a. Reportable employer superannuation contributions b. Employee share scheme income c. Various labels relating to income tested payments (such as government superannuation co-contribution, family tax assistance). 5. Electronic storage of TFN declarations The ATO have confirmed that under Taxation Ruling TR 2005/9 employers can image and retain electronic copies of TFN declarations as an alternative to storing paper copies. 6. HECS-HELP benefit for eligible graduates If you have a HELP debt relating to a teaching or nursing degree completed after 30 June 2009 and are working as a teacher or nurse, you may be eligible for a HECS-HELP benefit. For further information, refer to the HECS-HELP benefit section of the ATO website. 7. Same sex reform From 1 July 2009, all couples and families are to be treated the same way for tax purposes, regardless of gender. For tax purposes, ‘spouse’ now includes a same sex partner. Consequently, calculation of tax offsets (such as medical expenses tax offset, education tax offset, senior Australian tax offset), medicare levy, medicare levy surcharge may be affected by your same sex partner’s income for the first time in your 2010 tax return. 8. Entrepreneurs’ tax offset proposed income test From 1 July 2009, the entrepreneurs’ tax offset will be unavailable to taxpayers whose non-ETO income exceeds $70,000 for individuals and $120,000 for families. 9. Non commercial losses income test From 1 July 2009, taxpayers with ‘non commercial’ business losses must satisfy an additional income test. In order to avoid deferring the loss to future years, such taxpayers must have other income of less than $250,000 as well as meeting one of the previous four tests (profits, assessable income, other assets, real property). 10. Superannuation The concessional contributions cap for superannuation contributions for the 2009–10 financial year is $25,000 if you are under 50 years old on 30 June of the financial year. The transitional concessional contributions cap is $50,000, this applies to individuals who are 50 years old or over on 30 June 2010. This transitional concessional cap will expire on 30 June 2012. In the 2010–11 Federal Budget the government announced that, from 1 July 2012, it will increase the concessional contribution cap to $50,000 for individuals who are 50 years old or over, where their total super balances are below $500,000. Under this measure, from 1 July 2012, the $50,000 cap will be extended permanently for individuals aged 50 or over with total superannuation balances of less than $500,000. 11. Self Managed Superannuation The Cooper review recommended that art and collectibles should not be held as investments of a superannuation fund and recommended any SMSF currently holding art and collectibles as investments should divest them over a 5 year time period. During the 2010 federal election campaign, all political parties distanced themselves from this view. However, the Labor Party has said it will consult with industry and adopt an approach broadly consistent with the SMSF Professionals Association guidelines. The SPAA guidelines are relatively tight. Trustees of SMSFs with investments in art and collectibles should monitor this debate and contact our office for advice. Disclaimer This information is a general in nature and does not take into account particular situations. It does not constitute specific advice and should not be relied on as such. While we have taken reasonable care in preparation of this information, no responsibility is accepted for persons acting on this information. Return to top of page