14 May 2014 Federal Budget summary
The key initiatives in this year’s Federal Budget include:
• A Temporary Budget Repair Levy of 2% will be payable on taxable incomes over $180,000 pa for the next three financial years.
• The levy will increase the Fringe Benefits Tax rate to 49% for three years, starting on 1 April 2015.
• Changes to HELP debts will increase the amount payable and payments will be made at lower income levels.
• The income thresholds determining the Private Health Insurance Rebate and Medicare Levy Surcharge will not be indexed for three years, starting on 1 July 2015.
• The Dependent Spouse and Mature Age Worker Tax Offsets will be abolished from 1 July 2014.
• People who make non-concessional super contributions from 1 July 2013 that exceed the cap will have the option to withdraw the excess amount plus earnings on the excess.
• The timeframe for increasing the Superannuation Guarantee contribution rate to 12% will be amended.
• The Age Pension age will gradually increase to 70.
• The deeming thresholds will reduce from 20 September 2017.
• A range of changes to Family Tax Benefit – Part A and B will reduce the number of people who are eligible and, for some, lower the entitlements.
• The Commonwealth Seniors Health Care Card thresholds will be indexed from 20 September 2014.
• The definition of income for the Commonwealth Seniors Health Care Card will be expanded. From 1 January 2015, an amount will be included in the income test, based on an account-based pension being subject to deeming.