Budget, Income Tax Rate & Medical Expenses Offsets Posted on September 11, 2013 - 9:00 am by admin Budgeting For The 2013-14 Financial Year The end of a financial year provides an excellent opportunity to prepare Budgets and Cash Flows for the forthcoming year. Budgets and Cash Flows provide a timely resource. They give business owners an opportunity to reflect on their business and also look to the future. If you do need assistance with preparing Budgets and Cash Flows contact your Chartered Accountant. Personal Income Tax Rates The 2013 Federal Budget contained a number of significant taxation changes that will impact individual taxpayers. Individual income tax rates have remained unchanged and changes that were due to apply from 1 July 2015 have been deferred until 2017-18. Medical Expenses – Tax Offsets The 2013 Federal Budget announced that the Government intends to phase out the out-of-pocket medical expenses tax offset. Currently, a 20% tax offset can be claimed for eligible out-of-pocket medical expenses in excess of $2,060 per annum. For general medical expenses, only taxpayers who claim the offset for the 2013 income year will be eligible to claim in future years. Individuals who have expenses relating to disability aids, attendant care or aged care will continue to qualify for an offset up to 2019.