Some Important Changes From 1st July

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% which applies from 1 July 2014.

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 increases from $450,000 to $540,000.

And finally…. The Proposed Abolition of the Dependent Offsets

Not yet enacted, but the government is proposing to abolish nearly all of the dependant tax offsets, including the spouse offset.