How the 2016 Budget could affect you and your family
Changes to individual marginal tax rates
From 1 July 2016, the 37% marginal threshold will apply to the taxable income of individuals from $87,000. To compare, currently, taxable income above $80,000 is subject to the rate of 37%.
Medicare levy and Medicare levy surcharge
With effect from the 2015-16 year, the low-income thresholds for both the Medicare levy and the Medicare levy surcharge will increase per the table below:
Medicare levy income thresholds
|
|
2015-16 |
2014-15 |
|
Singles |
$21,335 |
$20,896 |
|
Couples (no children) |
$36,001 |
$35,261 |
|
Single seniors and pensioners |
$33,738 |
$33,044 |
|
Senior and pensioner couples with no children |
$46,966 |
$46,000 |
The additional amount of threshold for each dependent child or student will be increased to $3,306 (up from $3,238).
The increase in these thresholds takes into account movements in the Consumer Price Index (CPI) to ensure that generally low income taxpayers will continue to be exempted from paying the Medicare levy.
Medicare levy surcharge
The low-income threshold for the Medicare levy surcharge has been increased from $20,896 to $21,335 for:
- a person who is married (or both married and a beneficiary of a trust); and
- reportable fringe benefits.
Pause in indexation for Medicare levy surcharge and private health insurance rebate
The pause in the indexation of the income thresholds for the Medicare levy surcharge and the private health insurance rebate will continue for a further three years from 1 July 2018.
Income tax relief for Australian Defence Force personnel deployed overseas
Income tax exemptions will be provided for Australian Defence Force personnel deployed on Operation PALATE II in Afghanistan (from 1 January 2016 to 31 December 2016). The co-ordinates for Operation OKRA in the Middle East (from 9 September 2015) and Operation MANITOU in international waters (from 14 May 2015) will be updated.
If you are unsure how you may be affected by one or more of these changes, or are seeking Tax services and advice, your local MAS Tax Accountant would be happy to help.
Contact us below or call us on 1300 627 829
