2012 – 2013 Federal Budget The federal budget was handed down on 8 May 2012.  There are a number of changes, including a reduction in personal tax rates, increases to thresholds for low income and senior Australians but no cut in the company tax rate as previously announced. Personal Income Tax – Tax free threshold raised to $18,200 but rates adjusted up Flood levy ceases 30 June 2012 Superannuation Contribution Tax 30% for high income earned Schoolkids Bonus replaces Education Tax Refund Small business write offs - $6,500 for depreciable assets/$5,000 vehicles   No CGT discount for non residents Medicare low income thresholds adjusted Company loss rules – changes to allow carry back of losses Superannuation contribution cap for over 50 under $500,000 – deferred 2 years LAFHA – tightened further – only 12 months allowed Click here to read about how the Federal Budget affects you.

The Prime Minister has announced that she will seek to introduce a flood levy in the 2012 tax year to assist with the infrastructure rebuilding of flood affected regions in Queensland.

The ATO has announced that it has approved a tax deduction of $10 for bucket donations to the Queensland and Northern New South Wales flood appeals.