Changes Alert! Recent changes that may affect you.

1. Education options - one of the measures in this year's budget was the crackdown on income splitting by parents with children (who are minors).  From 1 July 2011 there will no longer be a low income tax offset for minors on unearned income.  This means that the tax free income limit for minors will reduce from $3,333 to $416.  So if you have set up a savings plan for your children there may be tax implications for the child.
2. Australian Government Payment.  Centrelink, in conjunction with the Department of Families, Housing Community Services and Indigenous Affairs, and the Department of Eduction, Employment and Workplace Relations, issue a guide to Australian Government Payments.  If you are currently on a Government payment, or may be considering retiring and want to know what options are available to you, you can obtain a copy of the guide by contacting Centrelink by phone or by visit their website at http://www.centrelink.gov.au/internet/internet.nsf/publications/co029.htm.  The guide is current to 30 June 2011, and covers areas including Family Tax benefits, Paid Parental Leave, Pensions and Allowances, and Seniors information.  The next guide issued from 1 July 2011 should include any changes to Government payments announced in this year's budget.  If you would like any assistance with Centrelink issues please contact our office. 
3. There were changes announced in the recent budget about salary packaging.  These changes may be good news for higher income earners regarding fringe benefits tax and cars.  If you would to discuss whether the changes may affect you please contact our office.
4. CGT concessions lost - in the recent budget the Government declared that assets in family trusts will count towards eligibility for the small business special CGT tax concessions.  This means that fewer small businesses will qualify for these concessions from 10 May 2011.  There are four concessions available to small business but there are three conditions that need to be met to qualify for the benefits.  The changes took immediate affect from budget night, and may apply to any assets within a family trust such as shares, property or even unrelated business. 

If you would like any further material on the above issues, or you would like to discuss how these changes may affect you, please contact our office on (02) 9894 9155, or by email to taggart@taggartgroup.com.au.

Information in this article was sourced from The Weekend Australian Financial Review May 14-15 2011,The Sydney Morning Herald Money section May 25 2011, and Centrelink - www.centrelink.gov.au.