McKern News

2014 Federal Budget

Published on Topic:

Welcome to the politics of Budget repair…

It has been a hot topic since 13 May when Treasurer Mr Hockey handed down his first and much anticipated Federal Budget. Below we have outlined the key points that will be likely to impact on many of us:

Business Tax Effects:

  • 1.5% Decrease in Company Tax Rate for SBE from 1 July 2015

  • 1.5% Paid Parental Leave Levy for Large Companies (<$2M turnover)

  • Commitment to abolish Mining Tax & Carbon Tax

  • Increase Superannuation guarantee to 9.5% from 1 July 2014

  • Tax Offset - Exploration Development Incentive

  • Restart Programme – $10K for Supplement for Mature Age Workers employed over 24 month period

Personal Tax Effects:

  • Temporary Budget Repair Levy for Taxpayers with incomes >$180k at a rate of 2% for 2014 - 2017 Financial Years

  • Medicare Levy will increase to 2%

  • HELP Debt repayments to commence when rebate income exceeds threshold of $50,638 from 1 July 2016

Indirect Tax Effects:

  • Fuel Excise will increase twice p.a. with CPI Aug 14

Community Effects:

  • Increase Pension Age 70 by 2035.

  • Amended Paid Parental Leave Scheme with $100k cap to commence 1 July 2015

  • Universities can set their own fees from 1st Jan 2016.

  • Infrastructure value of $125B by 2020

  • Medicare Co-Payment of $7 per visit for previously bulk billed patients

  • Earning/Learning/Participating to be Eligible for Welfare

  • Tightening eligibility for FTB Part B, particularly where the youngest child is six years or older

  • Low income singles will be assisted with new allowances of $750 p.a. for each child aged 6 – 12

  • Age Pension to be indexed to CPI rather than wages from September 2017

  • $20B Medical Research Future Fund

  • Changes to young jobseeker reforms from 1 July 2015

If you are unsure if you may be affected directly by any of the above and require further assistance please do not hesitate to contact your client manager to discuss further.

This article was written by Courtney Hutchins, an Accountant at our Burleigh Office. Courtney completed her Bachelor of Commerce at Bond University and has been with us at McKern & Associates for 5 years. Courtney dedicates much of her spare time assisting in the operation of a non-profit special needs dance school and enjoys relaxing with family and friends.