Home' News Bulletin : ADA News Bulletin June 2016 Contents PRACTICE
If you sell your business or the entity that carries on the business,
or are considering selling your business in the future, advice should
be sought prior to entering into any agreement to discuss eligibility
and planning to access these concessions. (Note: we are observing
this is an area of high risk for ATO audits at the moment).
PERSONAL DENTAL PRACTITIONER
TAXATION 2015 16
TEMPORARY BUDGET DEFICIT LEVY
In addition, to the current base Medicare Levy, individuals earning
over $180,000 remain subject to the additional 2% Temporary
Budget Deficit Levy (which shall also be in place for the 2017
income year). Accordingly, the top marginal tax rate remains at
MEDICAL EXPENSES TAX OFFSET
To be eligible for a 20% tax offset, eligible net medical expenses
must exceed the minimum threshold of $2,218 pa (the offset
is calculated as 20% of the excess over $2,218). However, for
singles earning more than $90,000 or couples earning more than
$180,000 (plus $1,500 for each dependent child after the first
child) the net medical expenses must exceed $5,233 and the
offset is at a rate of 10% on the out-of-pocket expenses in excess
For the 2016 income year, the net medical expense tax offset can
only be claimed in respect of medical expenses relating to disability
aids; attendant care; or aged care.
Donations or gifts of $2 or more to approved organisations and
charities are tax deductible. Ensure you retain receipts for donations
Maximising allowable deductions
Expenses incurred before year end can reduce taxable income.
Consider up-and-coming liabilities and the value in incurring them
before year end.
If you have a rental property, consider whether you are
maximising claims for capital allowance and capital works
deduction on the property. We can assist you with a report from
a quantity survey or suitably qualified specialist to maximise your
Pay income protection insurance premiums before year end. We can
assist you with obtaining quotes from insurance companies that are
appropriate for your circumstances.
In limited circumstances, an immediate deduction is available for
non-business prepaid expenditure (e.g. interest on a loan relating
to a rental property or on other passive investments such as a share
Contributions in respect to the quarter ending 30 June 2016 must be
made before 30 June for a deduction to be available in the 2016 year.
The concessional contributions cap for the 2016 income year is
$30,000 for all individuals, unless you were 49 years of age or
older on 30 June 2015. If you satisfy this age requirement, your
concessional contribution limit for the 2016 income year is $35,000.
Concessional contributions above these caps are assessed to the
individual at their marginal tax rate, and also incur an interest charge
from the ATO.
The non-concessional contribution cap for 2015/16 income year is
Superannuation -- rebate
A rebate of up to $540 is available for superannuation contributions
made during the 2016 year for your spouse where your spouse's
income is less than $10,800 pa (this rebate reduces for income
amounts up to $13,800 pa).
There were many changes affecting dental practices in the 2016
year and there are more to come in the recent Federal Budget. It's
important that you discuss the implications with a tax adviser.
Readers should not act only on the basis of material obtained in this
article because the contents are of a general nature and therefore do
not take into account each person's individual circumstances and may
be liable to misinterpretation. Do not act upon any of the information
contained within this article without first obtaining specific advice from
a tax adviser.
Crowe Horwath assumes no obligation to update this publication
after it has been issued. Whilst every effort has been made to
ensure accuracy, information contained may not be complete, may
have changed or may not be relevant to, or appropriate for your
Professional Practice Advisory
42 | ADA NEWS BULLETIN | JUNE 2016
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