2021-22 TAX RATES AND TAX OFFSETS
The main 2021-22 tax rate changes and tax offsets are:
• The $1,080 low and middle income tax offset (LIMITO) has been extended to this year.
• the low income tax offset (LITO) permanently increases from $445 to $700 and adjusts the phase out rules.
• the top threshold of the 19% personal income tax bracket increases from $37,000 to $45,000
• the top threshold of the 32.5% personal income tax bracket increases from $90,000 to $120,000.
QUILTER INSURANCE BONDS
The ATO has released Product Ruling 2021/11 on the taxation position of Quilter Insurance Bonds. Quilter Insurance Bonds are issued by an Isle of Man Insurer.
The ruling covers the taxation of bonuses and loans made under the policies.
ADMINISTRATIVE OVERPAYMENTS
The ATO has released a Decision impact statement WAD 205 of 2020 Commissioner of Taxation v Auctus Resources Pty Ltd which outlines the ATO’s response to the case , which considers whether the payment of a tax offset refund to the taxpayer was an administrative overpayment’ under subsection 8AAZN(3) of the Taxation Administration Act 1953 (TAA). In particular, it considers whether the tax offset refund is an amount that the Commissioner has paid to a person by mistake, being an amount to which the person is not entitled.