Saturday 16 Jan 2021
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Latest Accounting News
Hot Issues
Vaccination rates as they happen around the world
Toyota returns $18m in JobKeeper payments
Approaching the dawn
Videos and other resources for our clients
Brazen ATO scam costs Sydney woman $22k
Key dates for the second JobKeeper extension period
Returning expats reminded on tax snares with pensions, investments
80¢ per hour work-from-home deduction method extended
2020 is coming to an end. Phew!!
Victorian State Budget Overview 2020 - 2021
Employee Christmas Parties and Gifts – Any FBT?
FBT – Christmas Parties and Taxi Fares
JobMaker hiring credit given green light despite ongoing concerns
Super, death, and taxes
ATO extends JobKeeper deadlines ahead of Christmas
Small-business coronavirus grants set to be income tax-free under new bill
How Australians are taking advantage of income tax cuts
Part 1 – Budget reminders. Under the Hood.
Part 2 – Budget reminders. Under the Hood.
Part 3 – Budget reminders. Under the Hood.
Comprehensive list of COVID-19 initiatives and packages.
Businesses not meeting obligations warned as ATO restarts compliance programs
Employers cautioned over ‘hard and fast’ decline in turnover eligibility
‘Follow the spirt of the law’, warns ATO
$120m in JobKeeper clawed back by ATO, new compliance areas highlighted
Budget 2020 - A very comprehensive break down.
Budget 2020 - Fact Sheets
Budget 2020 - At a Glance, Overview, Outlook
Temporary home office expenses shortcut extended again
JobKeeper extension – changes implemented
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Reminder of Medicare Levy Surcharge (MLS)

 

A warning to taxpayers who may be considering cancelling private health insurance because of higher premiums starting for many on 1st October 2020.

 



       


You could become liable for a surcharge in its place – and have no benefits.


A single taxpayer will be liable for MLS for the number of days you do not have an appropriate level of private patient hospital cover (unless exempt), if your adjusted income was more than $90,000.  Taxpayer with spouse or dependent children threshold is joint $180,000.


A couple includes taxpayers living together on a genuine domestic basis. 


Income is a complicated calculation with reportable fringe benefits, first home saver super, net financial investment losses, net rental property losses, reportable employer superannuation contributions, deductible personal superannuation contributions, some trust distributions and some superannuation lump sums, included in the calculation.


Private patient hospital cover is provided by registered health insurers for hospital treatment in an Australian hospital or day hospital.  Singles must have an excess of $750 or less.


Extras cover (e.g. optical, dental) is not private patient hospital cover.


The single levy is:-


                   $90,000 +                                                                                  1%


                   $105,000 +                                                                           1.25%


                   $1,40,000 +                                                                            1.5%


Family income is double these thresholds,


If you have two or more dependent children, the family income is increased by $1,500 for each dependent child after the first child.


Hence, cancelling private health insurance will save the insurance outlay, (with no insurance fund benefits ) but it may increase the tax payable.  Do your sums.


And then consider whether your health is something you should insure – even in preference to some other insurance.


 


 


AcctWeb


 




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