June is the month to prepare for the new financial year changes in our business and bookkeeping.  Below are changes we would like to  draw your attention to:

   Superannuation

• Current Superannuation rate is 9.25%
• Super rate changes on 1st July, 2014 to 9.5%.
• This rate will remain in place until 30 June 2018.
• The rate will increase by .50% per year from 1 July 2018 until 1 July 2022 until it reaches 12%.

Non-concessional contribution cap is $180,000 from 1 July 2014 Concessional contribution general cap is $30,000 from 1 July 2014 For 2014-15 year those aged 49 years or over on 30 June 2014, the concessional contribution cap it $35,000Superannuation – Option to withdraw excess contributionFor any excess non-concessional contributions made after 1 July 2013, the government will allow individuals to withdraw those excess contributions and associated earnings.  If an individual chooses this option, no excess contributions tax will be payable  and any related earnings will be taxed at the individual’s marginal tax rate. Individuals who leave their excess non-concessional contributions in their superannuation fund will continue to be taxed on these contributions at the top marginal tax rate.  Non-concessional contributions in excess of a person’s cap are currently taxed at 46.5% (47% from 1 July 2014).  The liability for this tax is currently levied on the individual who must withdraw an amount from her or his superannuation fund equal to the tax liability by providing the release authority to her or his superannuation provider within 21 days

Tax Rates & Tax Free Threshold

The proposed increase to the tax free threshold will not proceed next financial year, but instead will apply from 1 July 2015.  The tax free threshold will then be $19,400

Medicare Levy

Medicare Levy increases to 2% as of 1 July 2014

Mature Age Worker Offset to be Abolished

The mature age worker tax offset will be abolished from 1 July 2014 The offset will be replaced by the expanded seniors employment incentive payment called Restart.  From 1 July 2014, a  payment of up to $10,000 will be available to employers who hire a mature age job seeker, aged 50 years or over, who has been receiving income support for at least 6 months. Eligible employers will receive $3,000 if an eligible mature age person is employed full-time for 6 months & an additional $3,000 if employed for 12 months.  Further $2,000 payments will be made after 18 months and 24 months full-time employment (maximum is therefore $10,000)