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Issue 170, 28 March 2008

Welcome to the latest issue of Thomson's Tax & Accounting Insight, your free news service for tax and accounting professionals.

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Income Tax Reform

As part of its election campaign, the Labor Government promised reforms to the income tax system. The Government has since introduced into Parliament a Bill proposing income tax rates cuts.

For the 2008/09 income year, the proposed personal tax rates and tax payable for resident taxpayers are set out in the table below:

 

Taxable income ($) Tax payable ($)
0 - 6,000 Nil
6,001 - 34,000 15% of excess over 6,000
34,001 - 80,000 4,200 + 30% of excess over 34,000
80,001 - 180,000 18,000 + 40% of excess over 80,000
180,001 + 58,000 + 45% of excess over 180,000

 

The low income tax offset (LITO) for the 2008/09 income year will increase from $750 to $1,200. Therefore, taxpayers will be entitled to the LITO if their taxable income is less than $60,000.

As a consequence of the increase in the LITO, senior Australians who are eligible for the senior Australian tax offset (SATO) will have no tax liability until their income reaches $28,867 for singles and $24,680 for each member of a couple for the 2008/09 income year.

The Medicare levy threshold amount for senior Australians who are eligible for the SATO will also increase in line with the LITO for the 2008/09 income year. The threshold amount will increase from $25,867 to $28,867. The Medicare levy phase-in limit for senior Australians who are eligible for the SATO will increase from $30,431 to $33,961. The Medicare levy phase-in limit that applies to couples eligible for the SATO will increase from $44,647 to $49,412.

This article appeared in Thomson's Client Alert Newsletter Service. Client Alert is a monthly newsletter that promotes your business and develops your client's awareness of upcoming tax issues. To find out more, phone Thomson Customer Service on 1300 304 197 or click here.

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Government Announces Timetable on Emissions Trading

In a media release dated 17 March 2008 (PW 35/08), the Minister for Climate Change and Water, Senator Penny Wong, announced the Australian Government's detailed timetable for introduction of emissions trading. The timetable includes several important stages:

  • March to June 2008: preliminary consultations on technical issues with industry and non-government groups;
  • July 2008: public release of a Green Paper on emissions trading design, drawing on preliminary consultations;
  • December 2008: public release of exposure draft legislation;
  • March - Mid 2009: Bill considered by Parliament;
  • 2009: consultation on emissions trading regulations;
  • 3rd quarter 2009: Act enters into force, regulator established; and
  • 2010: emissions trading scheme will commence.

This article appeared in Thomson's daily Latest Tax News (Tuesday 18th March). With tax fast-moving and ever changing - every day, practitioners rely on Thomson's daily Latest Tax News for quick, accurate, comprehensive information - no compromises. When you need to know what's new in tax and related news every day, there's only one place to look - LTN. 
To find out more, click here.

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Taxation Determinations TD 2008/3 to 2008/6 (FBT)

The Tax Office has released four Determinations dealing with FBT rates, thresholds, etc for the 2008/09 FBT year (i.e. the FBT year commencing on 1 April 2008).

Taxation Determination TD 2008/3

TD 2008/3: The following amounts represent a reasonable food component of a LAFHA for expatriate employees:

 

Family size* Per week
One adult $211
Two adults $338
Three adults $379
One adult and one child $273
Two adults and one or two children $379
Two adults and three children $442
Three adults and one child $442
Three adults and two children $505
Four adults $505

 

*For larger family groupings, add $127 for each additional adult and $62 for each additional child.

Taxation Determination TD 2008/4

TD 2008/4: The rates to be applied on a cents-per-km basis for calculating the taxable value of a fringe benefit arising from the private use of a motor vehicle other than a car are:

 

Engine capacity Rate per kilometre
0 - 2500cc 42 cents
Over 2500cc 51 cents
Motor cycles 13 cents

  

Taxation Determination TD 2008/5

TD 2008/5: The indexation factors for valuing non-remote housing are:

 

New South Wales 1.045
Victoria 1.044
Queensland 1.073
South Australia 1.041
Western Australia 1.097
Tasmania 1.054
Australian Capital Territory 1.059
Northern Territory 1.072

  

Taxation Determination TD 2008/6

TD 2008/6: The small business record-keeping exemption threshold is $6,766.

This content comes from FBT Compliance Toolkit. With this specialist toolkit, you have all you need to quickly and professionally complete FBT returns. As well as the toolkit software, you also receive a compliance guide providing you with up to date information on the latest FBT law and practice, an email news alert keeping pace with developments in this area, and a helpline enabling you to discuss specific FBT matters that arise when using the toolkit. To obtain more information, or to subscribe to FBT Compliance Toolkit, simply contact your nearest Thomson representative or call 1300 304 197.

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Thomson Tools

FBT Compliance Toolkit

The complete FBT service providing news, commentary, FBT return software and a helpline, the FBT Compliance Toolkit provides everything you need to quickly and professionally complete FBT returns, calculate taxable values and produce ready-to-lodge returns and documentation in minutes.

Features include:

  • Easy-to-use templates to automatically calculate taxable values and generate ready-to-lodge ATO approved returns.
  • Rollover of prior year details, with a quick reference archive for previous returns.
  • Expert FBT commentary to keep you up-to-date on significant FBT developments and offer guidance on the different types of fringe benefits and how to calculate them.
  • FBT Helpline for expert assistance from specialists Moore Stephens.
  • Fortnightly FBT email alerts to stay on top of developments, cases, rulings, rates and announcements.

For more information about the FBT Compliance Toolkit, click here.

Australian Tax Handbook

Get in-depth clarification of key tax issues with practical insights, analysis and in-depth coverage of the Australian tax system.

For 2008, the Handbook includes analysis of the new Better Super system, tax agent reforms and the taxation of financial arrangements reforms, plus coverage of all other tax-related bills, rulings, determinations, cases and announcements.

Logically structured, and cross-referenced with clear overviews, concise commentary and worked examples, the Australian Tax Handbook helps you understand and apply the tax system in real world situations. Also available as a Tax Return Edition, current to 1 July for tax return preparation.

For more information about the Australian Tax Handbook, click here.

Australian Tax Legislation

All the essential tax legislation with the added flexibility of multi-volume sets to help you choose the version that's right for you.

With an easy to follow, logical layout consolidating legislation and amendments to 1 January 2008, Australian Tax Legislation provides a clear, effective presentation of Acts, and includes history notes to enhance interpretation of tax laws.

The dedicated superannuation volume is also available as a stand-alone edition.

For more information about Australian Tax Legislation, click here.        

Australian GST Handbook

Apply the GST system to your advantage with this comprehensive topic-by-topic guide.

Covering all aspects of the GST legislation and its relationship with other taxes (including income tax and FBT), the handbook helps simplify complex issues with summaries of relevant rulings, legislative reforms and administrative developments. Written by experienced practitioners, the Australian GST Handbook guides you through the GST planning issues around starting, buying, running and restructuring a business.

For more information about the Australian GST Handbook, click here.

Financial Accounts Presentation Workshops

Preparing accounts in times of fluctuating markets can be difficult - Thomson's Financial Accounts Presentation Workshop provides you with the training and knowledge to deal with changes that will impact on accounts, including:

  • Rising interest rates and tighter credit markets
  • Sharply fluctuating market prices
  • Greater volatility in profit and cash flow forecasts

The workshop also addresses AASB 7 disclosures, now mandatory for June 2008 accounts, presenting a major challenge for many entities.

  • Melbourne: 7-8 May 08 and 12-13 June 08
  • Sydney: 14-15 May 08 and 2-3 July 08
  • Brisbane: 21-22 May 08
  • Adelaide: 29-30 May 08
  • Perth: 4-5 June 08
  • Canberra: 18-19 June 08
  • Gold Coast: 26-27 June 08

Book day 1 & 2, 6 weeks before workshop commences and SAVE $75.00*

*Early bird expiry dates:
Melbourne workshop 1: 16th April 2008, Sydney workshop 1: 21st April 2008, Brisbane: 28th April 2008, Adelaide: 17th April 2008, Perth: 23rd April 2008 , Melbourne workshop 2: 1st May 2008, Canberra: 6th May 2008 , Gold Coast: 15th May 2008, Sydney workshop 2: 22nd May 2008

For more information about the Financial Accounts Presentation Workshops, click here.

½ Day Auditors Briefing Workshops

Are your audits at higher risk in 2008?

Are you exposed to:

  • The changing and more complex economic conditions
  • Regulators actively seeking to change audit behaviour
  • Reporting rules like AASB 7 that dig deeper
  • Auditees lacking strong reporting systems or familiarity with those reporting rules

The second year of 'force of law' audit standards is a time to review progress as well as keep up-to-date with the continuing changes. This hands-on workshop will address rule changes and discuss the issues auditors will face in 2008, when managing audit firm's compliance with quality assurance standards.

  • Brisbane: 23 May 08
  • Sydney: 16 May 08
  • Melbourne: 9 May 08
  • Perth: 6 June 08
  • Canberra: 20 June 08

For more information about the ½ Day Auditors Briefing Workshops, click here.

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