You may recall that this legislation was first introduced into Federal Parliament in 2003 but lapsed when the 2004 Federal election was called. It surfaced again in the May 2005 Federal Budget and the new form of the legislation was due to be introduced in the last sitting of Parliament.
As the legislation is likely to allow couples to split contributions at year-end for contributions made in the previous year, the legislation may not have been a priority in the first sitting of the new financial year. The next sitting dates for Federal Parliament are 5-15 September 2005. We'll keep you informed.
The superannuation surcharge payable on an individual's surchargeable contributions has been abolished with effect from 1 July 2005. However, remember that the surcharge for the 2004/5 financial year still applies at 12.5%. (The changes were made in the Superannuation Laws Amendment (Abolition of Surcharge) Act 2005.)
The personal income tax relief announced in the May 2005 Federal Budget was also passed. But beware: the rates and thresholds were raised by the Senate. The ATO has not yet updated its website - so check the amended rates here: http://parlinfoweb.aph.gov.au/piweb/view_document.aspx?ID=363&TABLE=SCHED
(The changes were in The Tax Laws Amendment (Personal Income Tax Reduction) Act 2005.)
Leigh is a partner in the Maddocks Tax & Revenue team.
Leigh regularly provides advice on:
His advice covers both direct and indirect tax considerations.
Leigh advises Australian and multinational companies, high net worth individuals, accountants and financial advisers on all areas of taxation law.
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