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Tax Changes in the May 2010 budget includes:
- Reduction in depreciation rate from 3% to 0% on buildings from 2011/12 year
- Increase in GST rate from 12.5% to 15% from 1 October 2010
- Decrease in top individual tax rate from 38% to 33%
- Reduce Company tax rate from 30% to 28%
New Income Tax rates applying from 1 October 2010 are as follows:
- Income to $14,000 - 10.5%
- $14,001 to $48,000 - 17.5%
- $48,001 to $70,000 - 30%
- $70,001 and over - 33%
Threshold Changes from 28 June 2009
- UOMI for underpayment of tax will reduce from 9.73% to 8.91%
- the rate for
overpayment will reduce from 4.23% to 1.82%
Threshold Changes for SME's from 1 April 2009
- Provisional tax uplift rates will reduce for 2008/09 and 2009/10 from 105% to 100% and 110% rate to 105%
- Compulsory employer contributions will increase to 2% and remain at 2% in future years
- Transitional provisional tax payers rates will reduce from 100% to 95% and the 95% rate to 90%
- threshold for filing and paying PAYE once a month increases from $100,000 to $500,000.
- GST payments basis threshold will raise from $1.3 million to $2 million
- threshold for filing FBT has increased from $100,000 to $500,000.
- threshold for filing GST on six-monthly basis increases from $250,000 to $500,000
- threshold above which GST becomes obligatory increases from $40,000 to $60,000.
- the safe harbour threshold for provisonal tax use-of-money interst is increased from $35,000 to $50,000.
- Minor fringe benefits to employees without attracting FBT will be raised to $300 per quarter per employee and $22,500 a year per employer
- FBT prescribed interest rate applying to low-interest, employment-related loans will reduce from 10.90% to 8.05%
- closely held businesses can file FBT returns annually regardless of annual PAYE or SSCWT deductions, when FBT liability arises from provision of up to two vehicles.
- threshold for valuing closing stock at opening value increases from $5,000 to $10,000.
- threshold for allowing financial arrangeemnts to be accounted for on a straight-line basis increases from $1.5 million to $1.85 million
- non-individuals who meet a certain criteria will be allowed to return income or expenditure for financial arrangements on a cash accounting basis
Payroll Giving
- A voluntary payroll giving system will be intoduced from 1 April 2009 that will enable employees to make regular donations to charities from their salary or wages.
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Tax Changes in the May 2010 budget includes:
- Reduction in depreciation rate from 3% to 0% on buildings from 2011/12 year
- Increase in GST rate from 12.5% to 15% from 1 October 2010
- Decrease in top individual tax rate from 38% to 33%
- Reduce Company tax rate from 30% to 28%
New Income Tax rates applying from 1 October 2010 are as follows:
- Income to $14,000 - 10.5%
- $14,001 to $48,000 - 17.5%
- $48,001 to $70,000 - 30%
- $70,001 and over - 33%
Threshold Changes from 28 June 2009
- UOMI for underpayment of tax will reduce from 9.73% to 8.91%
- the rate for
overpayment will reduce from 4.23% to 1.82%
Threshold Changes for SME's from 1 April 2009
- Provisional tax uplift rates will reduce for 2008/09 and 2009/10 from 105% to 100% and 110% rate to 105%
- Compulsory employer contributions will increase to 2% and remain at 2% in future years
- Transitional provisional tax payers rates will reduce from 100% to 95% and the 95% rate to 90%
- threshold for filing and paying PAYE once a month increases from $100,000 to $500,000.
- GST payments basis threshold will raise from $1.3 million to $2 million
- threshold for filing FBT has increased from $100,000 to $500,000.
- threshold for filing GST on six-monthly basis increases from $250,000 to $500,000
- threshold above which GST becomes obligatory increases from $40,000 to $60,000.
- the safe harbour threshold for provisonal tax use-of-money interst is increased from $35,000 to $50,000.
- Minor fringe benefits to employees without attracting FBT will be raised to $300 per quarter per employee and $22,500 a year per employer
- FBT prescribed interest rate applying to low-interest, employment-related loans will reduce from 10.90% to 8.05%
- closely held businesses can file FBT returns annually regardless of annual PAYE or SSCWT deductions, when FBT liability arises from provision of up to two vehicles.
- threshold for valuing closing stock at opening value increases from $5,000 to $10,000.
- threshold for allowing financial arrangeemnts to be accounted for on a straight-line basis increases from $1.5 million to $1.85 million
- non-individuals who meet a certain criteria will be allowed to return income or expenditure for financial arrangements on a cash accounting basis
Payroll Giving
- A voluntary payroll giving system will be intoduced from 1 April 2009 that will enable employees to make regular donations to charities from their salary or wages.
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