Some important tax changes from 1st July 2014
From 1 July 2014 there are changes to the Medicare Levy, the compulsory employer superannuation contribution, superannuation contribution caps and the new 2% 'Deficit Levy' applies. Accordingly there are new tax rates.
Medicare Levy
The Medicare levy rises from 1.5% to 2%.
2% Deficit Levy
The new "Deficit Levy" (tax on high income earners) applies to taxable income in excess of $180,000.
Tax rates for the 2014/15 income year are as follows:
Taxable Income $ |
Taxable Payable $ |
0 - 18,200 | Nil |
18,201 - 37,000 | Nil + 19% of excess over $18,200 |
37,001 - 80,000 | $3,572 + 32.5% of excess over $37,000 |
80,001 - 180,000 | $17,547 + 37% of excess over $80,000 |
180,001+ | $54,547 + 47% of excess over $180,000 |
The above rates do not include the Medicare levy of 2%.
SGC
The compulsory employer paid super contribution rises from 9.25% to 9.5%.
Superannuation contribution caps
The general concessional contributions cap rises from $25,000 to $30,000. For individuals aged 49 or over on 30 June 2014, the concessional contributions cap is $35,000. The non-concessional cap is increased from $150,000 to $180,000. That means the 3-year bring forward rule increases from $450,000 to $540,000.