The 2014 Federal Budget had plenty in it, from a new Medical Research Fund to a fuel excise levy to a co-payment at the doctors. Here are some important items from the budget that affect payroll.
- Personal income tax rates will remain unchanged, but the Medicare Levy will increase to 2% from July 1, 2014. This is a 0.5% increase and will help fund the National Disability Insurance Scheme.
- Also from July 1, 2014, individuals earning $180,000 or higher will pay a Budget Repair Levy of 2% for every dollar of taxable income above $180k per year. This will last for 3 years.
- The Fringe Benefits Tax will increase to 49% from April 1, 2015 through to March 31, 2017. This will prevent high income earners from avoiding the new levy by using fringe benefits.
- Superannuation Guarantee (SG) payments from employers will increase from 9.25% to 9.5% on July 1, 2014. The amount employers must contribute to their staff's super will stay at 9.5% for 3 years, and then increase by 0.5% each year until 2022-2023, when it reaches 12%.
- From July 1, 2014 the Dependent Spouse Tax Offset will be cancelled. This means those with a dependent spouse born before July 1 1952 with a taxable income less than $10,166 will no longer be able to claim an offset.
- From July 1, 2014, the Mature Age Works Offset will also be cancelled. This means mature age workers will no longer be eligible for the offset of up to $500. However the Government will now provide a wage subsidy of up to $10,000 for employers who hire workers over 50 who haveb been on unemployment benefits or disability support pension for over 6 months.
- From July 1, 2015 the Paid Parental Leave scheme will be introduced, allowing parents 6 months paid leave (including super). The maximum amount receivable is $50,000.
- Students who have HELP or HECS debts will now be required to repay their loans once they start earning $50,638 per year.
- From 2035, the pension age will increase to 70. This applies to anyone born from January 1 1966.
With so many changes coming in, it can be daunting keeping on top of everything. So why not leave your payroll to the experts.
Call us on 03 9882 5837 to book an appointment.