The key initiatives in this year’s Federal Budget include:
From the 1st of July 2014, the Medicare levy will increase by 0.5% to 2% pa.
As of 1 March 2014, Families eligible for Family Tax Benefit (Part A) will only receive $2,000 following the birth of their first child, instead of the previous $5,000 and $1,000 for each subsequent child, the $5,000 Baby Bonus will be no longer.
From 1 July 2014, all pension will be taxed at 15% on any asset earnings above $100,000.
The Government has also confirmed that:
An increase from $25,000 pa to $35,000 pa to the superannuation concessional contribution cap.
.1 July 2013 for people 60 and over, and
1 July 2014 for people 50 and over.
What this means is that for the 2012/2013 and 2013/2014 years, the maximum amount of concessional contributions that anyone can make (and not be charged excess contributions tax) is $25,000 a year. From July 2014 people aged 50 or over, will then be able to make up to $50,000 in concessional contributions each year with account balances of less than $500,000.