Ever-changing tax reforms spark stress across the nation

IT CAN be stressful, it can be time-consuming and it is never simple.

And to make it even more complicated each year - there are constant changes to what Australian workers can and cannot claim back and how much people can claim back on certain expenses.

Globe accounting director Pauline Pickering said the major changes to the 2012-2013 tax year were to the Medical Expenses Tax Offset, depreciating rules for small business and the entrepreneur's tax offset.

The medical expenses tax offset threshold has increased to $2120 for low income earners - defined as earning less than $84,000 for singles and $168,000 for families or couples - allowing an offset rate of 20%.

This means you can claim the offset of 20% on any out of pocket medical expenses over $2120.

For high-income earners the threshold is increased to $5000 and the rate reduced to 10%.

There are new depreciating rules for small businesses, those with less than $2 million aggregated turnover.

The instant write-off for assets has increased from $1000 to $6500.

Assets held in a Long Life Pool with a current depreciation rate of 5% will go into the General Pool with a depreciation rate of 30%.

The purchase of a new or used motor vehicle used mainly for business will attract a tax deduction of $5000, plus 15% of the balance of the purchase price in the year of purchase.

It often pays to get expert advice on tax matters.

Topics:  end of financial year globe accounting

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