There have been many changes introduced from 1 July 2012 that will affect the individual taxpayer’s hip pocket, such as the  following:

1. The Private Health Insurance Rebate (PHIR) is now means tested which could incur a debt for the taxpayer.

2.The Medical Expenses Offset (NMETO) is now means… tested.

3.The Dependent Spouse Tax Offset (DSTO) is now restricted to those born before 30 June 1952.

4.The Mature Age Workers Tax Offset (MAWTO) is restricted to those born before 1 July 1957.

5.A further reduction in the maximum Low Income Tax Offset (LITO).

6.A reduction in the Government Superannuation Co‐contribution eligibility parameters.

7.Tax Agents and their preparers of Individual tax returns will be affected by the requirement to:

•ensure that they provide their client’s or their own bank account details for those individuals expecting a refund in 2013.

•complete some 35 additional labels that will be used by the ATO to reconcile the Total net financial income or loss amounts (IT5 and IT6) so that adjusted taxable income (ATI) is more reliably calculated.

•review the Income Test items IT1 to IT7 and Spouse details labels and ensure that each label has a value, even if it is zero.

There are extensive changes to the Self‐Managed Superannuation Fund return and other extensive changes to the Company, Trust and Partnership returns.

If you would like more information on the changes, please contact us on (02) 9569 1155