Income tax rates have changed for some groups
Starting from 1 July 2014 the medicare levy will increase to 2%. In addition there will be a 2% increase to the highest marginal resident individual tax rate (over $180,000 taxable income) as a result of the introduction of the 2% ‘Temporary Budget Repair Levy’
Therefore the top marginal tax rate for resident individuals will be 49% (including Medicare levy) and 47% for non-residents.
Tax planning tip:
High income individuals could consider bringing forward income to before 1 July 2014 or delaying deductions until after 30 June 2014 to reduce the affect of the 2% Budget Repair Levy, but weigh up against the cash flow and lost earnings.
Superannuation
The rate for superannuation contributions will increase to 9.5% from 1 July 2014 and remain at 9.5% until 30 June 2018.
Employers must make superannuation guarantee contributions for their employees on a quarterly basis within 28 days after the end of each quarter (September, December, March and June).
Tax planning tip:
Tax deductions for the superannuation contributions will only be available in the 2014 tax year if the contribution is received by superannuation fund by 30 June 2014.