ATO Low Income Tax Offset 2010: June 2010

How reportable fringe benefits affect you?

Even though a reportable fringe benefits amount is included on your payment summary and is shown on your tax return, it is not included in your assessable income. However, it is included in a number of income tests for:

Medicare levy surcharge
Medicare levy surcharge lump sum payment in arrears tax offset
deductions for personal super contributions
super co-contribution
tax offset for contributions to your spouse's super
mature age worker tax offset
Higher Education Loan Program (HELP) and Financial Supplement repayments
dependent tax offsets, including:
dependent spouse
child-housekeeper
parent, spouse's parent or invalid relative
housekeeper tax offset
senior Australians tax offset
pensioner tax offset
your child support obligations
your entitlement to certain income-tested government benefits.

ATO low income tax offset 2010 individuals

ato low income tax offset 2010 individuals

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Foreign exchange

Foreign exchange (forex) measures bring to account foreign currency gains and losses as assessable income or allowable deductions, on a realisation basis, to the extent such gains or losses are attributable to a fluctuation in a currency exchange rate, or to an agreed exchange rate differing from an actual exchange rate. The measures apply to all taxpayers, except for, broadly, banks and similar financial institutions.

Franking credits - non-profits

Eligibility requirements for refunds of franking credits. Franked dividends received by income tax exempt charities and deductible gift recipients are generally refundable.

Fringe benefits tax - individuals

Provides information on reportable fringe benefits and salary packaging.

Fringe benefits tax - businesses

Fringe benefits tax (FBT) is paid on certain benefits employers provide to their employees or their employees' associates in place of salary or wages.

Fringe benefits tax - government

Fringe benefits tax (FBT) is paid on certain benefits employers provide to their employees or their employees’ associates in place of salary or wages.

Fringe benefits tax - non-profits

Fringe benefits tax is payable by employers who provide fringe benefits to their employees or associates of their employees. Concessions apply to certain non-profit organisations.

Fuel schemes - businesses

Fuel schemes provide credits and grants to reduce the costs of some fuels or to provide a benefit to encourage the recycling of waste oils.

Fuel schemes - government

Fuel schemes provide credits and grants to reduce the costs of some fuels or to provide a benefit to encourage the recycling of waste oils.

General value shifting regime

The general value shifting regime addresses arrangements that shift value between assets, distorting the relationship between the assets' market values and their values for tax purposes. Subject to transitional rules, the regime applies from 1 July 2002.

Gifts & fundraising

Information on fundraising including the requirements for receiving tax deductible gifts and what donors have to do to claim deductions for their gifts.

Goods & services tax (GST)

Explains how GST works and what you need to do to meet your GST obligations.

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Imputation

Dividend imputation has been a major feature of the Australian taxation system since 1987. Entities that are taxed separately from their members are called corporate tax entities, and they are taxed at the company tax rate, which is currently 30%.

Income tax - non-profits

Only certain non-profit organisations are exempt from income tax, many are taxable. This page provides information on endorsement requirements for charities, self-assessing exemption and concessions for non-profits organisations that are taxable.

Income you must declare

You use your tax return to tell us about, or declare, the income you received during the financial year so we can work out (assess) the amount of tax you need to pay. Not all the money you might receive is 'declarable' income.

Integrity measures

The range of anti-avoidance measures are detailed in the information provided below.

International tax - individuals

Information for two groups of people: individuals who are Australian residents for tax purposes who earn foreign income, and individuals who are not Australian residents for tax purposes who earn Australian income.

International tax - businesses

Links to information on international tax issues for residents and non-residents.

International tax - tax professionals

'International tax essentials' provides information for tax professionals on individuals who are Australian residents for tax purposes who earn foreign income, and individuals who are not Australian residents for tax purposes who earn Australian income.

International tax agreements

Australia has entered into tax treaties with over 40 countries. Tax treaties, also known as double tax agreements, prevent double taxation and fiscal evasion, and foster cooperation between Australia and other international tax authorities.

Investments - individuals

This page contains information for individuals on tax matters relating to investments.

Investments, shares & options

Some businesses have complex structures, such as multiple entities with common owners or single entities with more than one business activity.

Life insurance companies

Division 320 of the ITAA 1997, which operates from 1 July 2000, ensures life insurance companies and friendly societies that carry on life insurance business are taxed on all of the profits made from their different activities in broadly the same way as activities in other entities that are similar in economic substance. Consistent with this treatment, changes were made to the taxation of certain special investment products provided by friendly societies, including scholarship plans, funeral policies and income bonds.

Luxury car tax

Luxury car tax (LCT) is a tax imposed on luxury cars. A luxury car is a car with a GST-inclusive value above the LCT threshold. You must pay LCT when you sell or import a luxury car. You must pay LCT as well as any goods and services tax (GST) payable.

ATO low income tax offset 2010 Tax topics

Debt and equity tests

The New Business Tax System (Debt and Equity) Act 2001 determines what is equity in a company and what is debt in an entity for tax purposes with effect from 1 July 2001.

Declarable income - individuals

Information on this page will help you determine if you should declare the income you receive in your tax return.

Deductible gift recipient - non-profits

A deductible gift recipient (DGR) is a fund or organisation that can receive tax deductible gifts.

Deductible gift recipient - government

Information on the types of deductible gift recipients, tax deductible gifts they can receive, and what donors need to do to claim deductions for gifts.

Deductions - individuals

Information on this page will help you identify what you can claim to reduce your taxable income.

Deductions - businesses

Deductions for costs incurred in running your business are allowable, provided the expenses are not of a private, domestic or capital nature.

Demergers

A demerger is a form of restructure in which investors in the head entity (for example, shareholders or unitholders) gain direct ownership in an entity that they formerly owned indirectly (the ‘demerged entity’). Underlying ownership of the companies and/or trusts that formed part of the group does not change. The company or trust that ceases to own the entity is known as the ‘demerging entity’.

Division 7A

Division 7A may apply to private companies that make tax-free distributions to shareholders or shareholders' associates in the form of payments, loans or debts forgiven.

Excise

Excise duty is a tax on certain types of goods produced or manufactured in Australia. These excisable goods include alcohol, tobacco and petroleum and alternative fuels. You need an excise licence to manufacture or store excisable goods or deal in tobacco seed, plant or leaf and you must have an excise licence prior to commencing these activities.

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Australian business number (ABN) - businesses

The Australian Business Number (ABN) is a single identifier for all business dealings with the tax office and for dealings with other government departments and agencies.

Australian business number (ABN) - non-profits

Your Australian business number (ABN) is a single identifier that is used to register for various taxes and concessions.

Australian business number (ABN) - government

The Australian Business Number (ABN) is a single identifier for all business dealings with the tax office and for dealings with other government departments and agencies.

Annual investment income reporting

Information for Australian businesses paying investment income to Australian and non-resident investors.

Business activity statement (BAS)

Businesses use an activity statement to report and pay a number of tax obligations, including GST, pay as you go (PAYG) instalments, PAYG withholding and fringe benefits tax. Activity statements are also used by individuals who need to pay quarterly PAYG instalments.

Business tax break

The small business and general business tax break provides an additional tax deduction for expenditure on certain qualifying assets. It provides a bonus deduction of 50% for small business and 30% or 10% for all other businesses providing certain eligibility criteria are met.

Capital allowances

Capital allowance measures contain the rules for calculating the decline in value of depreciating assets. New provisions operate from 1 July 2001 and apply to depreciating assets acquired both before and after that date. The new provisions consolidate a range of former capital allowance measures.

Capital gains tax (CGT)

Capital gains tax (CGT) is the tax you pay on a capital gain. It is not a separate tax, just part of your income tax. The most common way you make a capital gain (or capital loss) is by selling assets such as real estate, shares or managed fund investments. Managed funds also distribute capital gains you must report.

Company tax and imputation

Detailed information including the Franking Credit and Rebate Yields.

Consolidation

The Commonwealth Government introduced consolidation to reduce compliance costs for business, remove impediments to the most efficient business structures and improve the integrity of the tax system. Consolidation allows wholly-owned corporate groups to operate as a single entity for income tax purposes from 1 July 2002.

Contracting

Certain tax rules may be particularly important for contractors.

ATO low income 2010 senior australians tax offset

ato low income 2010 senior australians tax offset

You can claim the senior Australians tax offset only if you meet all the following conditions relating to:

age
income
eligibility for Australian Government pensions.

If you have a spouse you also need to work out whether they were eligible.

The Senior Australians tax offset calculator can help you work out whether you are eligible. If you are, it can also work out the amount you are entitled to claim.