etax Download 2010

In early July 2010 the ATO will make their 2010 version of etax available for download. Here is a link to the ATO site.

Changes for 2010 tax return: 

Good news first -  Over the last several months we have worked tirelessly, updating our knowledge base/tax blog, offering effective tax tips both for now and over the next tax year. Here are a couple of samples:

• Tax deduction finder for my job - locate deductions specific to your occupation
• Education Tax Refund 2010 - updates on rates and tips
  
• Bank Fee Legal Action - taxation implications
• Paid Parental Leave- Fact sheet on introduction on 1 January 2011
• Redundancy Pay Calculator - How to calculate taxable and non-taxable components
  

Bad news - There are quite a few NEW items on the 2010 tax return which could cause problems for many self preparers. There have been changes to the income tests used to work out some tax offsets, deductions and the Medicare levy surcharge. This may increase the amount of tax and Medicare levy surcharge you have to pay in 2009-10 and reduce the amount of Spouse tax Offset, Senior Australians Tax Offset and Pensioner Tax Offset.

You may be affected by the changed income tests if:

• you pay child support
• your employer has made extra super contributions for you such as salary sacrifice super contributions – these are called reportable employer super contributions
• you have rental properties, and the deductions you will claim exceed the income you have derived from them
• you have financial investments and the deductions you will claim exceed the income you have derived from them.

Now that the income tests include these additional amounts, your income may be above the existing income thresholds. This means that you may:

• no longer qualify for certain tax offsets or you may only qualify for a reduced amount
• no longer qualify for super co-contributions or personal super contribution deductions
• be liable for the Medicare levy surcharge
• be required to pay more of your Higher Education Loan Program or Student Financial Supplement Scheme debt.

See this post for more details on Adjusted Taxable Income==> What Is Adjusted Taxable Income (ATI)

We look forward to interacting with you over the next year.

Our 2010 online tax return system will be available for the 1st July 2010. See you at our online tax return site .