29 Nov 11 Taxation changes and deferrals in Mid-Year Economic and Fiscal Outlook (MYEFO)
In media release No 2011/148, issued 29 November 2011, the Treasurer, Wayne Swan, announced the following taxation changes and deferrals as a result of the Mid-Year Economic and Fiscal Outlook (MYEFO).
Personal income tax reform – Dependent Spouse Tax Offset
The Government will restrict the Dependent Spouse Tax Offset to those with spouses born before 1 July 1952, effective from 1 July 2012. This reform will not affect people whose spouse is an invalid or a carer, or who receive the zone, overseas forces or overseas civilian tax offsets.
The Government will defer 4 previously announced tax reforms by one year.
The start date of the standard deduction for work related expenses will be deferred until 1 July 2013.
The start date of the 50% tax discount for interest income will be deferred until 1 July 2013, allowing more time for consultation with stakeholders on issues previously raised by industry.
The start date of the phase down in interest withholding tax for financial institutions will be deferred until 2014-15.
The start date of the new tax system for managed investment trusts will be deferred until 1 July 2013, allowing more time for consultation with stakeholders about how to best implement the elements of the package.
The Government will also defer the 'equity purpose and effect' element of the 2011-12 Budget measure Debt/equity tax rules - clarification of the scope of an integrity provision until the commencement of the new tax system for MITs.