Income Tax Point-in-Time Service Updates

The Income Tax Point-in-Time Service has been updated to include the new amendments for the Social Services and Other Legislation Amendment (2014 Budget Measures No. 6) Act 2014 (Act No 122 of 2014) and Private Health Insurance Amendment Act (No. 1) 2014 (Act No 123 of 2014).

Act 122 of 2014

This Act reintroduces the following measures, previously introduced in the Social Services and Other Legislation Amendment (2014 Budget Measures No. 1) Act 2014 and the Social Services and Other Legislation Amendment (2014 Budget Measures No. 2) Act 2014, in Schedules numbered as set out below:

1. From 20 September 2014, rename the clean energy supplement as the energy supplement, and permanently cease indexation of the payment;
2. Implement the following changes to Australian Government payments: from 1 July 2015 – pause indexation for two years of the assets value limits for all working age allowances, student payments and parenting payment single; and; from 1 July 2017 – pause indexation for three years of the assets test free areas for all pensions (other than parenting payment single);
3. From Royal Assent, review disability support pension recipients under age 35 against revised impairment tables and apply the Program of Support requirements;
4. From 1 January 2015, limit the six-week overseas portability period for student payments.;
5. Generally limit the overseas portability period for disability support pension to 28 days in a 12-month period from 1 January 2015;
6. Exclude from the social security and veterans’ entitlements income test any payments made under the new Young Carer Bursary Programme from 1 January 2015;
7. Include untaxed superannuation income in the assessment for the Commonwealth Seniors Health Card (with products purchased before 1 January 2015 by existing cardholders exempt from the new arrangements), and extend from six to 19 weeks the portability period for cardholders;
8. From 1 January 2015, remove relocation scholarship assistance for students relocating within and between major cities; and
9. Implement the following family payment reforms from 1 July 2015: limit the family tax benefit Part A large family supplement to families with four or more children; remove the family tax benefit Part A per-child add-on to the higher income free area for each additional child after the first; and improve targeting of family tax benefit Part B by reducing the primary earner income limit from $150,000 a year to $100,000 a year.

Act 123 of 2014

The purpose of this Act is to pause the income thresholds which determine the tiers for the Medicare levy surcharge (MLS) and the Australian Government Rebate (the Rebate) on private health insurance at 2014-15 rates for three years. The Act amends the Private Health Insurance Act 2007 (the PHI Act) to set income thresholds for the income tiers at the 2014-15 rates in the financial years 2015-16, 2016-17 and 2017-18.

The amendments made by Acts 122 and 123 of 2014 have been updated in the Point-in-Time Income Tax Service current to 9 December 2014. (NB: Subscription required).

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