Tax Changes from 1st July 2014
• From 1st July 2014, taxpayers earning more than $180,000 and over will be taxed on additional 2% temporary budget repair levy.
• Dependent spouse and mature age worker tax offsets will be ceased.
• Taxpayers won’t be able to claim the net medical expenses offset anymore unless you had a claim in 2013 FY.
Superannuation rates will increase from 9.25% to 9.5% and it will remain 9.5% until 2018.
Under the current law, small businesses can claim an immediate tax deduction for individual assets costing less than $6500 excluding GST. The Government has proposed Mining Tax Repeal Bill that reduces instant asset write-off from $6500 to $1,000 for individual assets purchased or installed after 1st January 2014.
The Medicare levy for individual taxpayer will increase from 1.5% to 2%. Also, no change to Medicare levy surcharge has been made. Surcharge applies to taxpayer who does not have adequate health insurance.