What changed on 1 July 2014
Changes to Super Guarantee, Medicare Levy and more 

 The start of July also brings a new financial year, and with it a number of regulatory changes.

Here is a brief summary of the key changes that commenced on 1 July 2014:

Superannuation Guarantee Increased to 9.5%

As was previously legislated, from 1 July 2014 the Superannuation Guarantee rate increased from 9.25% to 9.5%.

This rate effects superannuation paid on ordinary times earnings – generally salaries and wages earned by employees.

It is proposed that the rate will stay fixed at 9.5% for the next four years, before rising by 0.5% per annum, reaching 12% on 1 July 2023.

Medicare Levy Increased to 2%

The Medicare Levy has increased from 1.5% to 2% from 1 July 2014.

Temporary Budget Repair Levy Introduced

In the recent Federal Budget, the Government announced a new "levy" on taxpayers earning more than $180,000 a year.

The levy is charged at 2%, and will only apply to income over the $180,000 threshold (not all taxable income). It is proposed to be a temporary charge only, and is proposed to apply from 1 July 2014 to 30 June 2017.

This increase, together with the increase in the Medicare Levy, takes the effective top marginal tax rate from 46.5% to 49%.

Changes to Super Contribution Limits

The amount that can be contributed to super has changed.

For the 2014/15 year, the superannuation limits are as follows:

Before-tax contributions
(including Superannuation Guarantee,    
salary sacrifice,extra employer and
tax-deductible personal contributions)

for those aged under 49 years
on 30 June 2014
$35,000 for those aged 49 years or more
on 30 June 2014

After-tax contributions
(including spouse, after-tax and non-        
deductible personal contributions)


If under age 65, you can contribute up
to $540,000 in a three-year period. This    
period starts from the first year you
add more than $180,000 after tax

Government Co-Contribution Threshold

The threshold for eligibility for the Government Superannuation co-contribution has increased to $49,488 for the 2014/15 year.

Taxpayers earning less than this amount who make non-concessional superannuation contributions may be eligible for a Government co-contribution to super of up to $500, tax free.


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