The only constant about tax is change. Here are some of the tax changes coming into play from 1 July.
**1.**Flood levy
For the first time in 9 years we are not getting a tax cut from 1 July. Even worse, some of us will be slugged more tax for the first time in decades with the introduction of the Flood Levy with it being charged at 0.5% for those with taxable incomes over $50,000 and increasing to 1% for those earning over $100,000. It feels a bit unpatriotic to complain though as the pain is small compared to those in Queensland that lost everything earlier this year.
**2.**Phasing out of dependent spouse rebate
If you have a spouse born on or after 1 July 1971 then you will no longer be able to claim the dependent spouse rebate.
**3.**Youth allowance loophole closed
Despite a favourable High Court ruling in November 2010, where students that received the Youth Allowance could claim self-education expenses in their tax return for the last four years, this will not be available next year after the loophole was closed in the May Budget.
**4.**Children’s bank accounts
Previously $3,333, the maximum that kids can now receive in “unearned” income, such as bank interest, dividends and trust distributions, is $416 without it being taxed as the generous Low Income Tax Offset has been removed for minors. The $1,500 rebate can now only be offset against their part-time wages.
**5.**Uniforms now part of Education Tax Refund
School uniforms purchased after 1 July 2011, will be claimable for the first time ever under the Education Tax Refund. Great news for parents who struggle financially in kitting out those growing bodies.
**6.**HELP discount to reduce
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