What the 2014 Budget means for you

Overview The Treasurer Joe Hockey delivered his first budget speech last night, containing few surprises. The Budget measures announced include increased ‘taxes’ in the form of a temporary levy for high income earners, tighter welfare rules, and wider cuts to education and spending. Click on this link for an interactive account of how the new budget will affect you directly http://www.news.com.au/finance/economy/what-the-federal-budget-2014-means-for-you/story-fn84fgcm-1226916437313 Below is a summary of key announcements that you may affect you from a financial advice perspective. Please talk to your financial adviser for further details. Highlights Income Tax Changes Temporary Budget Repair Levy Additional 2 per cent levy on taxable income in excess of $180,000 Social Security Progressively increase the Age Pension age to 70 from 2025 Reduced deeming thresholds from 2017 making it harder to pass the ‘income test’ for social security benefits Commonwealth Seniors Health Card changes Family Assistance New Paid Parental Leave Scheme Changes to Family Tax Benefits Excess non-concessional contributions tax changes Superannuation Excess non-concessional contributions made since 1 July 2013 can be withdrawn Re-phasing of superannuation guarantee (SG) rate increase 9.5 per cent rate will implemented from 1 July 2014, and maintained until 2017/18 12 per cent SG will not apply until 1 July 2022   Income tax changes Temporary Budget Repair Levy A three-year Temporary Budget Repair Levy will be introduced for high income earners from 1 July 2014 until 30 June 2017. The Temporary Budget Repair Levy will apply at a rate of 2 per cent on taxable income in excess of $180,000 per annum. A number of other tax rates that are currently based on calculations that include the...