2014 Budget summary
A presentation to
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Disclaimer
• <Adviser name> is not a registered tax agent.
If you wish to rely on this determine your personal tax obligations you should
seek advice from a Registered Tax Agent.
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2014 FEDERAL BUDGET ANALYSIS
13 May 2014
TAXATION
• Temporary Budget Repair Levy
‒ Additional levy of 2% will be payable on taxable incomes over $180,000pa
‒ Top marginal tax rate to 49%
‒ Fringe Benefit Tax (FBT) rate will increase to 49%
‒ From 1 July 2017, top marginal tax rate returns to 47%
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2014 FEDERAL BUDGET ANALYSIS
13 May 2014
TAXATION
• HELP debt changes
‒ 1 June 2016 interest accrued @ 10 year Government bond rate, maximum
rate of 6%pa
‒ 1 July 2016, HELP debt repayments from a lower income level
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2014 FEDERAL BUDGET ANALYSIS
13 May 2014
TAXATION
• Tax offsets to be abolished
‒ Dependent Spouse and Mature Age Worker Tax offsets to cease from 1
July 2014.
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2014 FEDERAL BUDGET ANALYSIS
13 May 2014
TAXATION
‒ Company tax rate to reduce by 1.5% to 28.5% from 1 July 2015.
‒ Introduction of fuel excise indexation by CPI.
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2014 FEDERAL BUDGET ANALYSIS
13 May 2014
SUPERANNUATION
• Excess non-concessional contribution (NCC)
‒ Option for excess from 1 July 2013 to withdraw those NCC’s that exceed
the cap plus the related earnings on the excess
‒ No tax on the excess amount withdrawn
‒ Tax on earnings @ individual’s marginal tax rate
‒ If no election is made, the excess will be taxed under the existing regime
@ top marginal tax rate
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2014 FEDERAL BUDGET ANALYSIS
13 May 2014
SUPERANNUATION
• Revised SG rate increase
‒ Increase to 9.5% will take effect on 1 July 2014
‒ Increase will remain at 9.5% for four years
‒ From 1 July 2018, it will increase by 0.5%pa, before reaching 12% on 1
July 2022.
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2014 FEDERAL BUDGET ANALYSIS
13 May 2014
SOCIAL SECURITY
• Increase in Age Pension age to 70
‒
Age Pension will increase to 67.5 from 1 July 2025 as previously legislated. It will then continue
to rise by six months every two years, until the pension age reaches 70 by 2035
‒
Currently the Age Pension age is due to increase from 65 starting on 1 July 2017, and gradually
reach 67 by 1 July 2023
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2014 FEDERAL BUDGET ANALYSIS
13 May 2014
SOCIAL SECURITY
• Increasing cost of medical care
‒ A contribution of $7 may be charged from 1 July 2015 for certain services.
‒ Relief for holders of concessions cards and children under 16 years of age
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2014 FEDERAL BUDGET ANALYSIS
13 May 2014
SOCIAL SECURITY
• Family Payment Reform from 1 July 2015
‒ Changes to payment rates
‒ Changes to eligibility thresholds
‒ Changes to eligibility
‒ Other Changes
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2014 FEDERAL BUDGET ANALYSIS
13 May 2014
SOCIAL SECURITY
• Commonwealth Seniors Health Card (CSHC) changes
‒ Current thresholds $50K singles $80K couples to be indexed from 20 September 2014 to
Consumer Price Index
‒ From 1 January 2015, the definition of income for the card will be expanded to include
income from superannuation pensions assessed at pre-determined rates (deemed)
‒ Grandfathering rules will apply.
‒ 20 September 2014, the seniors supplement will no longer be payable. However, Clean
Energy Supplement remains payable.
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THANK YOU
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