Tax Updates for the 2009-2010
The following are the changes to the tax code for the 2009-2010 tax year:
Removal of Baby Bonus
Starting with the 2009-2010 financial year, the baby bonus is no longer available, though you may still be able to claim it for past years through 30 June 2014.
Reforms to Some Entitlements
New laws may require you to complete seven new items on page 8 of the 2010 tax return, and if you have a spouse, an additional six new items on pages 9-11. The information from these new questions will be used to determine your eligibility for
- tax offsets
- certain deductions and tax concessions
- the Medicare levy surcharge
- HELP or SFSS repayment amounts
Starting in 2009-2010, the word ‘spouse’ has been redefined to include people of the same sex. From now on a spouse is someone who
- you were in a relationship with that was registered under a prescribed state or territory law
- although not legally married to you, lived with you on a genuine domestic basis in a relationship as a couple
Income Earned in Overseas Employment
Foreign employment income is now included in your assessable income. To combat double taxation, however, you may be able to claim a tax offset for the taxes you pay to a foreign country.
The only situation in which your foreign employment income is exempt from your assessable income is if you earned it as an aid or charitable worker, under certain types of government employment, or on projects in the national interest.
Employee Share Schemes
Also included in your assessable income beginning with the 2009-2010 financial year are shares and rights you acquire under an employee share scheme. Generally these shares and rights will be included in your assessable income for the year you acquire them, but in limited circumstances you may be able to defer the tax.
Taxation of Financial Arrangements (TOFA)
This year new taxation of financial arrangements (TOFA) rules were introduced, which apply mostly to large entities with complex financial arrangements. Individuals can elect for TOFA rules to apply to them, but it is advisable to speak with a tax agent before doing so.
In order to more accurately determine what super co-contributions you are entitled to, the ATO has begun sorting amounts on your tax return into eligible income, ineligible income, and assessable income. You may also need to complete the Super Co-Contributions questions under the Adjustments section of your tax return.