The Flood levy has been passed and will impose a 0.5% levy on
incomes from $50,001 to $100,000 and 1% above $100,000.
For ease, the levy has been included in the following table
setting out the tax rates for the 2011/12 income year, even though
it will be assessed separately in the same way as the Medicare
Taxable Income1 $
Tax Payable 2 $
0 – 6,000
6,001 – 37,000
15% of excess over $6,000
37,001 – 50,000
$4,650 + 30% of excess over $37,000
50,001 – 80,000
$8,550 + 30.5% of excess over $50,000
80,001 – 100,000
$17,700 + 37.5% of excess over $80,000
100,001 – 180,000
$25,200 + 38% of excess over $100,000
$55,600 + 46% of excess over $180,000
1. The tax-free threshold may effectively be higher
for taxpayers eligible for the low-income tax offset, the Senior
Australians Tax Offset and/or certain other tax
2. The above rates do not include the Medicare Levy
Editor: Note that the above tax rates are for resident
Supply of land development not a going concern
Editor: The following case involved the sale of a piece of
land for which the taxpayer was trying to claim the going concern
exemption from GST, despite having ceased development on
A sale of an "enterprise" (including a land
development) can be GST-free if the requirements for the going
concern exemption are met.
One of these requirements is that the taxpayer selling (or
otherwise "supplying") the enterprise must carry it on
right up until the date it is sold.
The taxpayer purchased land at Hope Island, Queensland, to
develop as a retirement community.
However, a number of years later it was decided that the
taxpayer would withdraw from the project, and it ceased all
construction works, removed existing construction works and all
services to the apartment and house sites.
Another purchaser was found which proposed to develop a
residential development according to its own designs, plans and
It had no need of or use for the taxpayer's architectural
plans and drawings, but still wanted to retain some of the features
of the taxpayer's original development, being the lakes, the
marina and the canal.
Bulk earthworks were required to enable those features to be
developed or completed and, in that sense, the taxpayer continued
The court held that the seller was not, at the date of the
contract, carrying on an enterprise, but had abandoned the project
in favour of simply selling the land upon particular terms.
Other obligations to finish off bulk earthworks were simply an
incident of that sale, so it was not a supply of a going concern,
but was a taxable supply.
However, it would have been more likely to be a supply of a
going concern if the taxpayer had assigned to the purchaser the
drawings and plans together with the benefit of all contracts with
end buyers off-the-plan, and had otherwise supplied all things
necessary to continue the project enterprise and carried it on
until settlement or the day of supply.
FBT: Benchmark interest rate
The benchmark interest rate for the FBT year commencing 1 April
2011 is 7.80% p.a. This rate replaces the rate of 6.65% that
applied for the previous FBT year.
The rate of 7.80% is used to calculate the taxable value of:
a fringe benefit provided by way of a loan; and
a car fringe benefit where an employer chooses to value the
benefit using the operating cost method.
FBT: Cents per kilometre basis
The rates to be applied where the cents per kilometre basis is
used for the FBT year commencing 1 April 2011 are:
The income tax treatment of any property lease incentive will vary, depending on the nature of the inducement provided.
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