Budget Brief: Individuals

Budget PersonalGREY3
13
May

Budget Brief: Individuals

13.05.15

The main focus of the budget for individuals was a change in benefits provided through childcare rebates as well as some other changes which have been noted below.

 

CHILDCARE

From 1 July 2017 a new Child Care subsidy will apply which is designed to assist working families. Families meeting relevant activity tests with annual incomes up to $60k will be eligible for an 85% subsidy tapering to 50% for families with annual incomes of $165k or more.  There is no cap on entitlement for families with annual incomes below $180k, with a $10k cap for families with annual incomes of over $180k.

 

CAR EXPENSES

From 1 July 2015 there will be a reduction in the number of methods under which an individual can claim a deduction for work related car expenses.  Two methods, the 12% original value and the “one third” method will no longer be available. Accordingly, only

  • the cents per kilometre method;
  • the logbook method

will continue to be available.  Importantly, the cents per kilometre method will be simplified to a single rate of 66c per kilometre regardless of engine size.

 

BACKPACKERS TAX

From 1 July 2016 working holiday makers will be treated as non-residents irrespective of whether they are physically present in Australia for more than 183 days in the year. As such, this will result in them losing the nil rate and lower  rate thresholds and having a starting tax rate of 32.5%.

 

2015/16 TAX RATES

The individual tax rates for the 2015/16 year remain unchanged and are summarised below: 

Band

Resident

Non Resident

$0 -$18,200

0%

32.5%

$18,201 – $37,000

19%

32.5%

$37,001 – $80,000

32.5%

32.5%

$80,001 – $180,000

37%

37%

$180,001 +

45%

45%

 

The above does not include Medicare or the temporary budget repair levy.