Tax Information
Individual Income Tax Rates 2011– 2012
| Taxable Income | Tax Rate (%) |
| $0 – $6,000 | 0 |
| $6,001 – $37,000 | 15 |
| $37,001 – $50,000 | 30 |
| $50,001 – $80,000 | 30.5 |
| $80,001 -$100,000 | 37.5 |
| $100,001 – $180,000 | 38 |
| $180,001 + | 46 |
Property Stamp Duty – Victoria
For the purchase of a home which will be used as your Principle Place of Residence with a settlement date on or after 1 July 2011 and before 1 January 2013
| Property Value | Duty Payable |
|
Up to $25,000 |
1.4% of value |
|
$25,001 – $130,000 |
$350 plus 2.4% of the dutiable value in excess of $25,000 |
|
$130,001 – $440,000 |
$2,870 plus 5% of the dutiable value in excess of $130,000 |
|
$440, 001 – $550,000 |
$18,370 plus 6% of the dutiable value in excess of $440,000 |
|
$550,001 – $600,000 |
$28,070 plus 6% of the dutiable value in excess of $550,000 |
|
More than $600,000 |
$5.5% of the dutiable value |
**Remember, that if you purchase an “off the plan” apartment, townhouse or house, where construction has not commenced, you maximise Stamp Duty savings.
Reduction of Duty for Eligible First Home Buyers
Rate of duty according to the Duties Act 2000
For Settlement Dates On or After 1 July 2011 and Before 1 January 2013 for Eligible First Home Buyers
For settlement dates on or after 1 July 2011, land transfer duty rates will be reduced for eligible first home buyers purchasing their principal place of residence (PPR) valued up to $600,000. Land Transfer Duty will be reduced by 20% on 1 July 2011, followed by additional 10% cuts on 1 January 2013, 1 January 2014 and 1 September 2014, totalling a cumulative 50% reduction for settlement dates after 1 September 2014.
For further information please refer to the Victorian 2011 – 2012 Budget
Investment Properties
The following information will be of assistance to you. If you purchase a property as an investment and rent out the property, you can claim certain items against your total income.
Depreciation, expenses and interest paid on borrowings have the effect of reducing your total taxable income. By completing an Income Tax Witholding Variation form you will reduce your tax payable each payday and eliminate the need to wait until year's end to make a claim against tax already paid. This facility is a great help to your all important monthly cash flow and makes ownership of an investment property that much easier.
ATO Worksheet:
The following completed worksheet is an example of how to calculate your net rental income or loss. From "ATO Rental Property Guide"
|
Income |
Established Property |
New Property |
Your Example |
|
Rental income |
8,500 |
15,600 |
|
|
Other rental related income |
800 |
|
|
|
Gross Rent |
9,300 |
15,600 |
|
|
|
|
|
|
|
Expenses |
|
|
|
|
Advertising for tenants |
48 |
300 |
|
|
Body corporate fees |
500 |
1,200 |
|
|
Borrowing expenses |
260 |
442 |
|
|
Cleaning |
100 |
|
|
|
Council rates |
700 |
900 |
|
|
Deductions for decline in value |
597 |
8,500 |
|
|
Gardening/lawns* |
350 |
|
|
|
Insurance* |
495 |
800 |
|
|
Interest on loan(s) |
11,475 |
23,562 |
|
|
Land tax |
200 |
|
|
|
Legal expenses |
150 |
780 |
|
|
Pest control |
50 |
|
|
|
Property agent fees |
800 |
1,092 |
|
|
Repairs/maintenance |
1,000 |
|
|
|
Capital works deductions |
2,745 |
|
|
|
Stationery, postage |
80 |
50 |
|
|
Travel expenses |
436 |
80 |
|
|
Water charges |
350 |
150 |
|
|
Sundry rental expenses |
95 |
100 |
|
|
Total Expenses |
20,431 |
36,756 |
|
|
Net Rental Loss |
11,131 |
22,356 |
|
* Cannot claim if these included in Body Corporate fees.
Net Rental Loss reduces your gross taxable income by this amount.
Page updated 30 June 2011