Income Tax - 2 parents, 1 kid..

[summerlump]

A friend told me that if my husband is the only one working, and his income is under $48 000 and we have a kid, the tax rules are different.

How does it work?

[Mummaof2]

If you have a partner or dependant child and your income is below $100,000 and you don't have private health insurance you will not be charged the extra 1% Medicare Levy Surcharge on top of the 1.5% Medicare Levy. If your single and your income is under $50,000 the same rule applies.

So if your husbands DH Taxable Income is above $50,000 he needs to make sure he is claiming you and your child/children as dependants on his Income Tax Return.

The tax rates are as follows for 2006/2007
Taxable income
Tax on this income
$0 – $6,000
Nil
$6,001 – $25,000
15c for each $1 over $6,000
$25,001 – $75,000
$2,850 plus 30c for each $1 over $25,000
$75,001 – $150,000
$17,850 plus 40c for each $1 over $75,000
Over $150,000
$47,850 plus 45c for each $1 over $150,000

[summerlump]

Thanks for that

[Mummaof2]

No problems