What's New for the 2009-2010 Tax Lodgment Season?

30 June, 2010

What you need to know before you lodge online.

The tax season is upon us, and it's time to lodge your 2009-2010 tax return. The Australian Taxation Office (ATO) has made some major changes to the tax code, which you need to be aware of in order to get the most out of your tax return. TaxPack has provided the following breakdown of the biggest changed to keep you informed - and we've incorporated all these developments into our own system, so you can lodge your tax return online worry-free, even if you're unsure how these updates affect you.

All the major ATO updates for 2010:

• Baby Bonus removed: The Baby Bonus will NOT be offered on 2009-2010 returns. However, if you did not claim the Baby Bonus for a previous year in which you were eligible, you may still claim the Baby Bonus on a prior year tax return, in some cases, until 30 June 2014.
• Entitlement Reforms: Changes have been made to the law concerning tax offset entitlements, deduction and tax concession eligibility, Medicare levy surcharges, and HELP and SFSS repayment amounts. The updated calculations for these assessments will be made by our system when you fill out all the requested information for your 2010 tax return.
• Super Co-Contribution Entitlements: On 2009-2010 tax returns, the ATO will be requesting additional information in order to assess your super co-contribution entitlements, and sorting your income amounts into eligible, ineligible, and assessable income. The changes to these rules will be incorporated into our system, and the necessary calculations will be made when you fill out all the requested information.
• Same-Sex Couples: The definition of "Spouse" for tax purposes has expanded, to include any person whom the primary taxpayer was in a registered relationship with under state or territory law, OR any person who genuinely lived with the primary taxpayer in a domestic relationship as a couple, whether or not they were legally married.
• Foreign Employment Income: Most income earned in overseas employment is now assessable as income on your tax return, though you may also be entitled to a tax offset for any foreign tax paid on that income. Your overseas income is still exempt from assessment if you earned that income as an aid or charity worker, or in certain types of government employment or on projects in the national interest.
• Employee Share Schemes: Discounts on shares and rights acquired in employee share schemes are now assessable as income during the year in which they are acquired. The tax liability for this income may be deferred under some circumstances.
• Taxation of Financial Arrangements: New rules have been created regarding the taxation of financial arrangements (TOFA). However, the TOFA rules generally only apply to large financial entities with assets or turnover in the tens to hundreds of millions of dollars, or smaller entities who elect to apply the TOFA rules. These rules generally do not apply to individuals.