What’s new for individuals

Before you complete your tax return for 2015, there are some changes you should be aware of in case they affect you.

Mature age worker tax offset

You can no longer claim the Mature age worker tax offset (MAWTO) in your tax return.

Previously, to be eligible for the offset you needed to be an Australian resident, be born before 1 July 1957, and receive income from working (within certain limits).

This means that the 2013─14 tax return is the last return in which you can claim the offset, so you won’t be able to claim it in your 2015 tax return.

Dependent spouse tax offset

You can no longer claim the Dependent spouse tax offset (DSTO) in your tax return.

In addition, a person who is eligible for the zone, overseas civilian or overseas forces tax offset will, from 1 July 2014, only be entitled to claim for a dependent (including a spouse) who is an invalid or cares for an invalid.

If you have claimed the DSTO by reducing the tax withheld by your employer during the year, this may result in you having an amount to pay when you lodge your tax return. You’ll need to give an updated TFN declaration (or Withholding declaration) to your employer for 2015-16 to increase the tax they deduct from your pay.

Net medical expenses tax offset

The Net medical expenses tax offset is being phased out. In most cases, you will only be eligible to claim the offset this year if you received it in your 2013-14 income tax assessment. This is the final year you can claim the offset.

This does not apply to you if you had medical expenses relating to disability aids, attendant care and aged care. You can continue to claim the offset for these expenses until 30 June 2019.

Temporary budget repair levy

As part of the 2014-15 Federal budget the Government introduced a Temporary Budget Repair Levy. Individual taxpayers with a taxable income of more than $180,000 per year will have had additional tax withheld by their employer, starting from 1 July 2014.

The levy is payable at a rate of 2 per cent of each dollar of a taxpayer’s taxable income over $180,000. It applies to both residents and non-residents from 1 July 2014 and applies to the 2014-15, 2015-16 and 2016-17 income years.

In some cases the levy is payable even if you have a taxable income of $180,000 or less.

If the levy applies to your income, it will generally appear on your Notice of Assessment you receive after you lodge your 2015 tax return.

Source: https://www.ato.gov.au/Individuals/Lodging-your-tax-return/What-s-new-for-individuals/