Preparation for the new Financial Year

Posted on 26 June 2012

The end of the financial year is a time for ticking boxes. Have you met your obligations for the 2011 – 2012 financial year and are you prepared for and ready to implement or benefit from the changes which will come into play on 1st July, 2012. Here is a look at a few key points to consider

For individuals:-

  • The new home grant scheme begins on 1st July with $5000 available to buyers of newly built or off the plan homes with a value up to $650K and to buyers of vacant land which will have a new home built on it valued up to $450K. This grant is for all non-first home buyers, owner occupiers and investors.
  • From 1st July the transfer duty exception cap on new homes increases to $550K with duty concessions for new homes valued between $550k and $650K. Vacant land increased to $350K with duty concessions applicable for vacant land valued between $350K and $450K
  • The 30% health insurance rebate phases out for singles earning over $84K and families earning over $168K. An extra Medicare levy is applicable is you do not have hospital cover and earn more than this.
  • For self-employed, advise your superannuation fund in writing of any deductible contribution you have made. If you don’t advise in writing it won’t be allowed.
  • The tax free threshold for the financial year 2012-13 rises to $18,200.
  • The flood levy which applied to taxable income derived from 1 July 2011 to 30 June 2012 will come to an end.

Further along in the new financial year, the First Home Owner Grant (New Home) Scheme will begin on 1 October 2012. This scheme fazes out the old First Home Owner Grant Scheme and will only apply to first home owners who purchase or build a new home with a value up to $650k. The grant increases from $7k to $15k until 31 December 2013 and then will be $10k from 1 January 2014.

For business:-

  • The transitional provision for change over to the rates in Modern Awards moves to the next step on July 1st. Contact our office should you have any queries or require assistance re: Awards.
  • The market rate of interest imposed on any tax default committed under various taxation and revenue laws administered by the OSR will change on 1 July 2012 to 3.66%. For further details check the information on this link:-http://www.osr.nsw.gov.au/taxes/other/taa/rates/ .
  • A new reporting system will become applicable to the Building & Construction Industry as of 1st July 2012. Businesses who make payments to contractors for their services, will now be obliged to report to the ATO annually, due 21 days from the end of the financial year.
  • For small business, the deduction for immediate depreciation rises from $1000 to $6500.
  • Fuel tax credit rates change and some of the areas affected are liquid fuels used in some off-road business activity and heavy vehicles travelling on public roads. For further details check the information on this link.

If you require assistance with any aspect of the changes which occur in the new financial year, please call our office on (02) 9890 4755. We will be happy to assist you to ensure you meet your obligations.

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