Other taxation reform

The government has also announced other taxation changes which, depending upon your circumstances, may be of some benefit to you. These include:

Increasing the level of the dependent spouse rebate from $1,655 to $2,100. The rebate will continue to reduce by $1 for every $4 by which the dependent spouse’s separate net income exceeds $282. As a result, the level of separate net income a spouse may earn before the dependent spouse rebate cuts out entirely will rise from $6,901 to $8,681.
Allowing the trading of interests in forestry managed investment schemes. If you invest into one of these schemes, you may be entitled to a deduction for some (or all) of your initial investment. From 1 July, 2007, this deduction will be allowed provided at least 70% of the expenditure is directly related to developing forestry. However, there has always been a concern in selling these investments before the forests have been harvested as it may have resulted in the loss of the initial deduction. In the future, this trading will be allowed (with no impact on the up-front deduction) provided the initial investor has held the investment for a minimum of four years.

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