We provide below a budget summary of the major tax changes.
It is often what does NOT CHANGE that is more important, such as the following:
- No additional tax on Super Funds in pension mode
- No certainty as to the treatment of instant asset write off reducing from $6,500 to $1,000. This was to have changed from 1 January 2014, however did not get passed by Parliament and was not mentioned in the budget.
- No major changes to the tax system.
1. Medicare levy increases to 2% from 1 July 2014
2. Budget repair levy 2% for incomes over $180,000 from 1 July 2014 to 30 June 2017
3. Superannuation Excess Contributions allowed to be withdrawn and included in individuals income.
4. Dependant Spouse Tax Offset and Mature Age Worker Offset to be removed as previously announced by the Government.
5. First Home Saver Bank Account Scheme to stop.
6. Family Tax Benefits rates to change.
7. Increase age pension age to 70 by 2035.
8. For Seniors Health Care Card to qualify from 1 January 2015 untaxed Superannuation income will be included as assessed income. This will not affect the income tax treatment.
9. Superannuation Guarantee rate to stay at 9.5% from 1 July 2014 to 30 June 2018.