Changes will be made to the way excess concessional contributions will be taxed making contributions to super…
if you are 50 and over
you will be able to make deductible contributions of up to $35,000 (up from $25,000) in the 2013-14 income year and thereafter.
if you are 50 or over
access to the higher cap on deductible contributions of $35,000 will be available from the 2014-15 income year.
if you are under 50
the cap on deductible contributions will remain at $25,000.
Tax Payable
From 1 July 2014 your tax bill will be greater, because the Medicare levy is being increased from 1.5 % to 2% from 1 July 2014. Furthermore, tax cuts you were promised in last year’s Budget as part of the Government’s Clean Energy Future package, for commencement on 1 July 2015 will be deferred until the carbon price is projected to exceed $25.40.
Medical Expenses
Your entitlement to the medical expenses tax offset will exist for only the next two years (i.e. 2013-14 and 2014-15). For both of those years, you will be entitled to the offset only if you claimed it in the previous year (2012-13 or 2013-14 respectively). Having said that, the offset will continue to be available for taxpayers for out of pocket medical expenses relating to disability aids, attendant care or aged care expenses until 1 July 2019.
Self Education Expenses
There will be a capof $2,000 on deductions for work related self education expenses.
Superannuation
Superannuation funds will be entitled to a tax exemption for only $100,000 (per pension recipient) of current pension income (income earned on assets supporting the payment of a pension to a member) from 1 July 2014. Income in excess of $100,000 earned from those assets will be taxed in the fund at 15%.
Having a Baby
If you are planning to have a baby on or after 1 March 2014 you will not receive the Baby Bonus. Rather, you will receive a $2,000 family payment for the first child and $1,000 for second or subsequent children, to be paid as an initial payment of $500, and the remainder in seven fortnightly installments, but only if you are eligible for Family Tax Benefit Part A.
Family Tax Benefit Part A
You will not receive the increase in payments promised in the 2012-13 Budget. The maximum rate of FTB Part A was to be increased by $300 for families earning less than $46,355 with one child, and $600 for families with more than one child, and by $100 for families earning more than $46,355 with one child, and $200 for families with more than one child.
If you are a foreign resident with real property holdings in Australia (direct or indirect)
You will have ten percent of sale proceeds withheld by the purchaser if and when you sell on or after 1 July 2016. This will be a non-final withholding tax which will not apply if you are selling residential property for less than $2.5 million.
