With the beginning of a new financial year commencing and a multitude of taxation changes both proposed and recently enacted we have collated a list of updates that you need to be aware of.
With a new federal government there has been some political uncertainty due to the controversial nature of some of the changes. As a result, a number of announced taxation changes are yet to become law. Many of these announcements indicate that the changes, if passed, will be applied retrospectively. Given this, additional care needs to be taken when considering tax strategies for the year ahead.
- The top marginal tax rate (including the Medicare levy and temporary budget repair levy) moves up from 46.5% to 49% for those with taxable income exceeding $180,000.
- The amount that can be contributed to superannuation has increased to the following:
General concessional contributions cap: $30,000
Concessional contributions cap (50 years+): $35,000
Non-concessional contributions cap: $180,000
3 year bring forward limit: $540,000
- Super Guarantee rate increases to 9.5% from 1 July 2014.
- From 1 April 2015 the Fringe Benefits Tax rate will increase to 49% in line with changes to the top marginal tax rate.
- The Government announced that as part of the repeal of the Carbon Tax legislation the following benefits would also be impacted:
- Loss carry back measures would be repealed effective 1 July 2013;
- The immediate deduction available to small businesses for assets would revert back to $1,000; and
- The upfront deduction on motor vehicles of $5,000 would also be scrapped.
- Research and Development Tax Incentive offset rates reduced by 1.5% from 1 July 2014.
- The Government proposes to reduce the corporate tax rate of 28.5% from 1 July 2015.
- The Government’s proposed Paid Parental Leave Levy on companies with a taxable income of more than $5 million is also intended to commence on 1 July 2015.
Should you wish to discuss any of the above items, please contact your Pilot adviser on (07) 3023 1300.