The Government has announced that it will defer the marginal tax rate cuts that were due to come into effect on 1st July, 2015. The current Marginal rates are proposed to remain as they are.
The Medicare Levy will increase from 1.5% to 2.0% as at 1st July 2014 to provide funding for Disability Care Australia. Low income earners will continue to get relief from the Medicare levy through the low income thresholds.
The Government proposes to introduce a higher Concessional Contribution Cap for Superannuation. Please see the table below that shows the the cap up to 2015.
|Standard concessional cap||$25,000||$25,000||$30,000*|
|Concessional cap – aged 50 to 59||$25,000||$25,000||$35,000|
|Concessional cap – aged 60 or more||$25,000||$35,000||$35,000|
*Estimate only. Indexation of the standard concessional cap has been paused until 1 July 2014 and is expected to recommence at this level.