1. Flood levy

The government has introduced a temporary Flood and flood levy applying to taxable income for the 2011-2012 year only. Individual taxpayers who have a taxable income over $50,000 in the 2011-12 financial year will have to pay the flood levy. This includes foreign residents who have Australian income.

2. Low income offset

Special rules apply in calculating the tax payable on income of a minor. Under these minors, “unearned income” of minors over $416 is taxed at the highest marginal rate of tax (45 for 2011/12). The availability of the low income rebate to reduce tax on unearned income of minors has been removed with effect from the 2011/2012 year.

3. Self Management Super Fund (SMSFs)

The supervisory levy payable by SMSFs has been increased to $180 from $150 a financial assistance funding levy has been imposed in 2011.

4. Spouse offset

From 2011/12, the dependant spouse rebate phases out for all spouses born after 1 July 1971.

5. Education tax refund

The cost of school uniforms is an eligible expenses for the purposes of the education expenses tax offset from 2011/2012

6. Fringe benefit tax

For new vehicle contracts entered into after 7:30 pm on 10 may 2011, the existing statutory fractions will be phased out and replaced by a flat rate of 20 over the next four years.

7. Super co-contribution thresholds

In the 2011-12 Federal Budget, the government announced that the freeze of the indexation applied on the superannuation co-contribution income thresholds will apply for an additional year. So enjoy $1,000 super co-contribution last year and make sure your contribution is received by 30 June 2012.

8. Higher Education Loan Program (HELP) debt

From 1/1/2012, the discount for students choosing to pay their HELP contribution up-front has been reduced from 20 to 10, and the bonus on voluntary repayments of $500 or more of a HECS / HELP debt has been reduced from 10 to 5.