Money Doesn’t Come Without Guidance ...
Income tests provide guidance about individual’s eligibility and entitlement for a number of tax offsets, benefits, and obligations that is decided by ATO and other government organisations.
An individual’s ability to access certain entitlements is assessed using the following tests:
Adjusted taxable income (ATI)
ATI assesses individual’s entitlement through
It determines individual's eligibility for the seniors and pensioners tax offset, calculated by individual’s taxable income plus applicable amounts like adjusted fringe benefits, deductible personal superannuation contributions, net financial investment, net rental property loss.
Medicare levy surcharge purposes
Income Test used for surcharge purposes to work out if individual have exceeded the Medicare levy surcharge threshold that applies to that person. It determines:
Income test eligibility allows a person to get following tax offsets and benefits.
Other items considered for tax offset includes-