Some important tax changes from 1 July 2014

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:

[Tax Rates(Image)]

SGC

The compulsory employer paid super contribution rises from 9.25% to 9.5%.

Superannuation contributions 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 rule increases from $450,000 to $540,000.