tax-and-social-security-guide-2010-2011
CPA Australia
T
ax and Social Security Guide: 2010 – 2011
Tax rate for Minors – unearned income
Non-resident personal tax rates 1/7/10 – 30/6/11
Medicare levy
1.5% of taxable income – Not applicable to:? Non-residents ? i ndividual taxpayers where taxable income is under the ‘threshold amount’ - $18,488 (2009/10);? m arried taxpayers where family income is under the ‘family income threshold’ - $31,196 (2009/10).
Medicare levy shaded in where taxable income is above the threshold limits
Medicare surcharge
1% levy surcharge applicable where not covered by private health insurance
and exceed following thresholds
T ax Offsets
Spouse offset
Fringe Benefits Tax
Statutory Fractions for car benefit valuation
Formula ABC - E Where: D A = base value of the car
B = statutory fraction applicable to the car for the year
C = number days in year car benefit was provided to an employee
D = number of days in the year
E = the amount of recipient’s contribution
Operating cost method
(C X (100% - BP) – R Where:
C = operating cost of the car during the holding period
BP = business use percentage applicable to care in holding period
R = the amount of any recipient’s payments for the holding period
This guide is an initiative of the CPA Australia Retirement Savings Centre of Excellence. Information is current – based on legislation as at 1 July 2010 and updated for social security as at 20 September 2010.
Other termination payments
Non ETP lump sum payments
Bona fide redundancy, invalidity or approved retirement scheme payments
Life expectancy tables 2005-2007*
*Apply from 1 January 2010
Employment termination payments
Transitional termination payment (lump sum)(Transitional period 1 July 2007 – 30 June 2012)
Death benefit employment termination payments
Age Pension
Extra allowable amount for retirement village and granny
Pension Loan Scheme
? Loan paid in regular fortnightly instalments
? L oan amount dependent on value of the property offered as security, equity wish to retain and age at time loan is granted
? C ompounding interest charged on the balance of the loan and calculated on a fortnightly basis
? C an receive up to maximum amount of Age Pension including Pharmaceutical Allowance and Rent Assistance, each fortnight.
C P A 171661 12/2010
Copyright ? CPA Australia Ltd 2010
DISCLAIMER: CPA Australia Ltd has used reasonable care and skill in compiling the content of this material. However, CPA Australia Ltd makes no warranty as to the accuracy or completeness of any information in these materials.These materials are not intended to be advice, whether legal or professional. All names, figures, solutions and scenarios are fictitious and have been established for training purposes only. You should not act solely on the basis of the information contained in these materials as parts may be generalised and the application of exercises, examples and case studies may vary from organisation to organisation and may apply differently to different people and circumstances. Further, as laws change frequently, all practitioners, readers, viewers and users are advised to undertake their
own research or to seek professional advice to keep abreast of any reforms and developments in the law.
Age Pension – Transitional Rules
Income Test
Social Security – Fringe Benefits
Commonwealth Seniors Health Card
To qualify must:? h ave reached pension age but not qualify for the Age pension (or other certain pensions)
? be an Australian resident living in Australia ? h ave an annual adjusted taxable income below the income test threshold, where adjusted taxable income = taxable income + foreign income (where no Australian income tax is paid) + net investment losses + employer provided
benefits (in excess of $1000) + reportable super contributions
The commonwealth seniors health care card also provides access to the Seniors Supplement.
Allowances