To avoid mistakes, it is always better to learn about the changes made by the Tax Office, when it comes to tax returns. For those who want to know about the tax return changes, this article summarizes the important changes.
Net medical expenses tax offset
The NMETO is now available for the expenses which are medically related, including medical support and care. Exceptions are made for the amount received for the NMETO for the year, 2013.
Excess concessional contribution
The ECC is no longer subjected to the excess contributions tax. The individual’s accessible income would be included in the ECC and is taxed at the marginal rate. When the cap is breached, an additional tax of 15% should be paid. If you have elected to have a release from the super fund to pay tax, you would have 85% additional tax payable.
Dependent tax offset
The claims of dependent tax offset have increased in 2013 and thus, the ATO would be targeting the high claims in 2014. The criteria for the offset have been changed. Learn about the new criteria before claiming.
Private health insurance rebate
The PHIR is adjusted to a single rebate adjustment factor. The taxable income increases above the threshold. The threshold is 88 thousand dollars for a single person and 176 thousand dollars for a family. If you have not advised the private health insurance fund to be entitled to rebate, you must pay back when the tax return is filed. Above the age of 30, an extra 2% is paid per year to take out the private health insurance. The PHIR is not available for a lifetime cover for the private health insurance premium. If you have claimed the rebate then you need to pay back during the tax returns.
The most common advice from the ATO every year is, to be educated about what to claim and what not to claim. Any mistakes in the tax filing would lead to delay in the payment of the refund. If you are not sure about what to claim, there are a lot of articles on the internet to clarify your doubts. To be on the safer side, it is always better to seek the help of a financial expert who would audit your report and help you to claim the things which you have missed. This would help to increase the refund that you would be receiving this year.