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INDIVIDUALS
Record Keeping
Records are normally required to be retained for tax purposes for between 2 and 5 years depending on the class of taxpayer.
Records are normally required to be retained for tax purposes for between 2 and 5 years depending on the class of taxpaper
However records should be retained for longer periods in relation to capital gains tax.
Taxation Rates
The following table outlines the individual income tax rates for 2012/13 and 2013/14:
| Taxable Income ($) | Tax Rate (%) |
| 0 – 18,200 | 0 |
| 18,201 – 37,000 | 19% for each $ over $18,201 |
| 37,001 – 80,000 | $3,572 + 32.5% for each $1 over $37,001 |
| 80,001 – 180,000 | $17,547 plus 37% for each $1 over $80,001 |
| 180,001 + | $54,547 plus 45% for each $1 over $180,001 |
In addition, there is a Medicare Levy payable of 1.5%. The flood levy does not apply after 30 June 2012.
The increase in Medicare Levy to 2.0% takes effect on 1 July 2014.
Medicare Levy Surcharge and Private Health Insurance Rebate
The income thresholds that apply to the 2012/13 financial year are:
| Details | Full Entitlement | Tier 1 | Tier 2 | Tier 3 |
| Taxable | Income | |||
| Private Health Insurance Rebate | ||||
| Singles | $84,000 or less | $84,001 to $97,000 | $97,001 to | Over |
| $130,000 | $130,000 | |||
| Families | $168,000 or less | $168,001 to $194,000 | $194,001 to $260,000 | Over $260,000 |
| Aged under 65 years | 30% | 20% | 10% | 0% |
| Aged 65 to 69 | 35% | 25% | 15% | 0% |
| Aged 70 and over | 40% | 30% | 20% | 0% |
| Medicare Levy Surcharge | ||||
| All ages | 0% | 1% | 1.25% | 1.50% |
Prepayments
Prepay interest up to 12 months in advance on investment loans to obtain a deduction in 2013.
However, due to anti – avoidance measures, you must demonstrate a commercial reason – other than obtaining a tax deduction, for making this prepayment. Payment must be paid prior to 28 June 2013.
Make payments for investment and income producing expenses, donations to deductible gift recipients and work related expenses prior to 30 June.
