Blog

8th Jun 2020

How to claim tax offset up to $540

Spouse superannuation contributions & tax offset up to $540

Under the current 2019-20 tax rules, you may be able to claim an 18% tax offset on super contributions up to $3,000 that you make on behalf of your non-working or low-income-earning spouse. You can contribute more than $3,000, but you won’t receive the spouse contribution tax offset on anything above $3,000.

If your spouse receives $37,000 or less in assessable income, then you can access the maximum tax offset of $540, provided an after-tax contribution of at least $3,000 is made. The tax offset is then progressively reduced until the tax offset reaches zero for spouses who earn $40,000 or more in assessable income in a year.
Read the full article here…

1st Jun 2020

How to save Medicare Levy Surcharge (MLS)

The MLS is an additional tax and applies to Australian residents for taxation purposes who are high income earners and don’t have an appropriate level of hospital cover. If you or your family do not have an appropriate level of private patient hospital cover you may be required to pay the MLS.

For 2019-20 the base income threshold is $90,000 for singles and $180,000 for families. However, you do not have to pay the MLS if your family income exceeds the threshold but your own income for MLS purposes was $22,398 or less. General cover, commonly known as ‘extras’, is not private patient hospital cover. It covers items such as optical, dental, physiotherapy or chiropractic treatment.
Read the full article here…

8th Jun 2019

How to claim tax offset up to $540

Spouse superannuation contributions & tax offset up to $540

Under the current 2018-19 tax rules, you may be able to claim an 18% tax offset on super contributions up to $3,000 that you make on behalf of your non-working or low-income-earning spouse. You can contribute more than $3,000, but you won’t receive the spouse contribution tax offset on anything above $3,000.

If your spouse receives $37,000 or less in assessable income, then you can access the maximum tax offset of $540, provided an after-tax contribution of at least $3,000 is made. The tax offset is then progressively reduced until the tax offset reaches zero for spouses who earn $40,000 or more in assessable income in a year.

Read the full article here…

5th Jun 2019

How to claim Government Co-contribution up to $500

Government Co-contribution up to $500

If you are on a lower income, the Australian Government is contributing 50 cents toward your super for every $1 extra you contribute to your super, up to a maximum of $500 a year. This is called the co-contribution scheme.

Eligibility for the super co-contribution:

You are eligible if:

  • your total income (including assessable income, fringe benefits and reportable super contributions) for the financial year 2018-19 is less than $52,697.
  • 10% or more of your total income comes from eligible employment-related activities or carrying on a business, or a combination of both.
  • you are less than 71 years old at the end of the financial year.
  • you did not hold a temporary visa at any time during the financial year (unless you are a New Zealand citizen or it was a prescribed visa).
  • you have a total superannuation balance less than the transfer balance cap ($1.6 million from 2017-18) at the end of 30 June of the previous financial year.
  • you have not contributed more than you non-concessional contribution cap.
  • make an after-tax contribution before 30 June 2019.
  • you have lodged your tax return for the financial year.