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MARCH 2009
Tax bonuses
Einfeld Symonds Vince has been liaising with the Australian Taxation Office on the five one-off payments scheduled for distribution from March and April 2009 to eligible households and individuals as part of its $42 billion 'Nation Building and Jobs Plan'.
The payments will generally be sent to you directly at your residential address as shown in your 2007-2008 income tax return. For those people who elected to have refunds deposited directly to bank accounts, the bonus funds will be banked directly to the same bank account that was nominated for the refund.
If you have an outstanding tax debt, and you are entitled to a tax bonus, the Tax Office will not offset your tax bonus against this debt. You will receive the tax bonus as a cheque or a payment into your bank account.
The payments will not be taxable and will not be counted as income for social security purposes.
1. Tax Bonus for Working Australians
This bonus payment will be available to Australian resident taxpayers who paid tax in the 2007/08 financial year (after taking into account available tax offsets and credits). If you received a refund due to PAYG withholding credits, you are still eligible for the bonus.
The payment is subject to an income threshold test which determines that a:
- $900 bonus will be paid to eligible taxpayers with a 2008 taxable income of up to $80,000;
- $600 bonus will paid to eligible taxpayers with taxable incomes exceeding $80,000 and up to $90,000; and
- $250 bonus will be paid to eligible taxpayers with incomes exceeding $90,000 up to and including $100,000.
Taxpayers will not need to apply for the payment: the ATO will automatically make the payment after determining eligibility. However, the tax bonus will only be paid to those who have their 2007/08 return in by 30 June 2009.
Temporary residents who meet the qualification criteria will receive the bonus. Most people under 18 years of age are not eligible.
2. Single Income Family Bonus
This one-off bonus payment of $900 is for families with children that have one main income earner (i.e. families who, on 3 February 2009, were eligible to receive Family Tax Benefit (FTB) Part B).
The payments will be made automatically by Centrelink from 11 March 2009.
3. Farmer's Hardship Bonus
The Government will provide a one-off payment of $950 to farmers and rural-dependent small business owners who, on 3 February 2009, are receiving certain income support and exceptional circumstances relief payments.
The payments will be made in the fortnight commencing 24 March 2009.
4. Back to School Bonus
This payment of $950 is for families eligible for FTB Part A on 3 February 2009 for each eligible child of school age (aged 4 to 18 on 3 February 2009).
5. Training and Learning Bonus
This $950 payment consists of two categories, the first being for eligible students, and the second being an additional incentive for social security recipients to return to education and training.
Tips for claiming donations to emergency relief funds
The Tax Office has announced a practical approach to ensure those donating to help the victims of the Victorian bushfires and Northern Queensland floods can do so with minimum fuss.
People who give to ‘bucket donations’ can claim a tax deduction equal to their contribution up to $10 in their 2008/09 tax return without the usual need to keep a receipt.
If people use the web or phone to make a donation over $10, their web receipt or credit card statement will be enough. Others should be provided with a receipt for their contributions.
This also will apply to donations collected through third parties such as banks and retail outlets.
Taxpayers should remember that only donations to organisations that have been endorsed can be claimed as a tax deduction – these are listed as ‘deductible gift recipients’ at www.ato.gov.au.
Reminder about the Education Tax Refund
The Treasurer has called on parents to make sure they keep their receipts to make the most of the new Education Tax Refund.
Eligible families will be able to claim a 50% refund every year (through their tax return at the end of the financial year) for key education expenses up to:
- $750 for each child undertaking primary studies (maximum refund of $375 per child, per year); and
- $1,500 for each child undertaking secondary studies (maximum refund of $750 per child, per year).
The Education Tax Refund will apply to some of the most common back-to-school items, including:
- laptops, home computers and associated costs;
- home internet connections;
- printers;
- education software;
- trade tools for use at school;
- school text books; and
- stationery.
Who is eligible?
Parents entitled to FTB Part A for children in primary or secondary school for the relevant financial year are eligible for the Education Tax Refund, as well as parents who would be eligible, but for the fact that the child receives certain payments or allowances, such as Youth Allowance, Disability Support Pension, and ABSTUDY Living Allowance.
The reasonable food component of a living-away-from-home allowance for expatriate employees for the FBT year commencing 1 April 2009 is as follows:
One adult $221 per week
Two adults $354 per week
Two adults and one or two children $397 per week
Two adults and three children $463 per week
An “Adult” for these purposes are people aged 12 years or over.
The rates to be applied where the cents-per-kilometre basis is used for a motor vehicle which does not fall under the FBT definition of a car for the FBT year commencing on 1 April 2009 are:
Engine capacity Rates per km 0 to 2500cc 44 cents Over 2500cc 53 cents Motorcycles 13 cents
2009-10 FBT Non-car motor vehicle benefits
Introducing ESV Finance Solutions
ESV has recently established a new business division, ESV Finance Solutions. This division continues our initiatives designed to provide our clients with a complete “circle of services”, aligning with ESV Strategic, our financial planning and risk division.
ESV Finance Solutions goals are to provide an alternative service to our clients in relation to obtaining residential, commercial and asset finance. In the future we shall seek to expand this service to include transaction and business banking referral arrangements.
ESV Finance Solutions will strive to offer expert advice in what has become a complex market due to the current global financial crisis. Our team will compare finance and institution options and negotiate with the lender, ensuring our clients have the right finance whether it is for personal or business purposes.
If we can be of assistance please call Matthew Duryea or Steve Gatto at ESV Finance Solutions today, on 02 9283 1666 to make an appointment.
Have you taken a look at our ESV website lately?
We are working on a Secure Login Area for our clients. To register your interest, click on http://www.einfelds.com.au/register.html and fill out the form. Client facilities can be accessed through log-in direct from the home page, and include a range of other services such as:
Liability limited by a scheme approved under Professional Standards Legislation.
The information in this newsletter is quite general in nature and anyone intending to apply it practically to their own circumstances should seek professional advice to verify it’s individual applicability.
If you have any queries regarding the information contained in this
update please do not hesitate to contact us.
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