Tax Info

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ADDITIONAL TAX INFO

Income Tax Rates

These rates apply to individuals who:

  • are residents of Australia for tax purposes for the whole financial year and
  • did not leave full-time education for the first time during the financial year.

Tax rates 2016-17

Taxable incomeTax on this income
$0 – $18,200Nil
$18,201 – $37,00019c for each $1 over $18,200
$37,001 – $87,000$3,572 plus 32.5c for each $1 over $37,000
$87,001 – $180,000$19,822 plus 37c for each $1 over $87,000
$180,001 and over$54,232 plus 45c for each $1 over $180,000

Tax rates 2015-16

Taxable incomeTax on this income
$0 – $18,200Nil
$18,201 – $37,00019c for each $1 over $18,200
$37,001 – $80,000$3,572 plus 32.5c for each $1 over $37,000
$80,001 – $180,000$17,547 plus 37c for each $1 over $80,000
$180,001 and over$54,547 plus 45c for each $1 over $180,000

The above rates do not include the Medicare levy of 2.0%

The above rates do not include the Temporary Budget Repair Levy; this levy is payable at a rate of 2.0% for taxable incomes over $180,000.

Calculators

A simple tax calculator is available to help you calculate the tax on your taxable income. The comprehensive tax calculator also takes into account Medicare levy, HECS/ SFSS repayments, tax offsets and tax credits to give you an estimate of the amount of your tax refund or debt.

Company tax rates Tax rates 2016-17

Rate %
Companies generally
including corporate limited partnerships, strata title bodies corporate,
trustees of corporate unit trusts and public trading trusts
30
Small Business Companies with a turnover of less than $10 million per annum27.5

Rates of depreciation for Construction Costs (Capital Works)

Capital Works (Division 43) deductions may be available for expenditure on the construction of buildings, structural improvements, extensions, alterations or improvements. Capital Works deductions are not available for expenditure on plant & equipment and are treated separately under (Division 40).
If refurbishment or renovation work has been carried out to the property after 16 September 1987 eg: new kitchen or extensions then a capital works deductions is available.
For structural improvement such as the addition of retaining walls or pergolas then a capital works deduction is available for such improvements after 27 Feb 1992.

DatesHotels, Motels & Guest HousesManufacturingCommercialResidentialStructural Improvements
Today to 27th Feb 19924%4%2.5%2.5%2.5%
26th Feb 1992 to 16th Sep 19872.5%2.5%2.5%2.5%
15th Sep 1987 to 18th Jul 19854%4%4%4%
17th Jul 1985 to 22nd Aug 19844%4%4%
21st Aug 1984 to 20th Jul 19822.5%4%2.5%
19th Jul 1982 to 21st Aug 19792.5%2.5%

Common Depreciable items and their effective lives (Plant & Equipment)

You cannot claim a deduction for a depreciating asset’s decline in value if you are allowed a capital works deduction for the asset. Either one or the other.
If your depreciating asset is not plant and it is fixed to or otherwise part of a building or structural improvement, your expenditure will generally be construction expenditure for capital works and only a capital works deduction may be available.
Plant includes items that are articles within the ordinary meaning of the word. A curtain, a desk or a dishwasher would all be considered articles. A structure attached to land or forms part of the structure of the premises such as a cloths hoist or pergola would not be considered articles.
All plant & articles are deemed to have their own effective lives as determined by the tax commissioner. Even if the plant is considered old it would be considered to have some effective life as it is still in use and working order. Common effective lives for some assets generally included in a property:

Effective Lives

AssetsYears
Carpet10 years
Tiles40 years. Part of the building
Light Shades5 years
Fixed down lights40 years. Part of the building
Kitchen cooktops12 years
Kitchen benchtops40 years. Part of the building
Laundry – Clothes dryers10 years
Laundry – Taps and sink40 years. Part of the building

Low-value Pooling

An optional low-value pooling arrangement came into effect from 1 July 2001.  It applies to items of plant costing less than, or having a value less than, $1,000.  Assets allocated to a low-value pool adopt the diminishing value rate of 18.75% in the first income year that they are purchased and installed and ready for use to produce assessable income. Subsequent years the rate increases to 37.5%. If you have already been using the diminishing value method of depreciation, then you can start up a pool at 37.5% in the initial year for existing assets.  The low-value pool has the effect of ‘accelerating’ the depreciation on low cost and low value items of plant and dramatically increases the amount of your depreciation claim.  At Write It Off we take advantage of all the tax laws available to you to legitimately maximise your depreciation claim on your investment property. We cater the report to your individual circumstances to take Full Benefit of all taxation rules. Infact it is our job to maximise your property depreciation claim.

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