May 2014 Budget Edition

In this edition:

Welcome

INDIVIDUALS AND FAMILIES

- Budget Repair Levy

- Age pension reforms

- Family Tax Benefit reforms

- Medicare and patient contribution          changes

COMPANIES & BUSINESSES

SUPERANNUATION

- Superannuation Excess Contributions    Tax

- Rescheduling increase in                          superannuation guarantee

 FUEL, OIL & MINING

• Budget Repair Levy of 2% will be imposed on individuals' taxable income in excess of $180,000 pa, from 1 July 2014 until 30 June 2017.
• The dependent spouse tax offset and the mature age worker tax offset will be abolished from 1 July 2014.

• The Medicare levy low-income threshold for families will be increased from the 2013/14 income year.

• The First Home Saver Accounts scheme will be abolished from 1 July 2015.

• The income threshold at which students commence repayment of their Higher Education Loan Programme (HELP) debts will be reduced with effect from 1 July 2016. In addition, indexation of HELP debts will be aligned to the yield on 10-year government bonds (up to a 6% maximum) instead of CPI from 1 June 2016.

• Reforms to the pension system will be introduced including increasing the qualifying age for the Age Pension to 70 by 1 July 2035.

• The eligibility age for the Newstart Allowance and Sickness Allowance will increase from 22 to 24 years from 1 January 2015.

• Family Tax Benefit (FTB) reforms will be introduced, including reducing the FTB Part B primary earner income limit to $100,000 pa and introducing a new $750 allowance for single parents on the maximum FTB Part A rate, but who will no longer be eligible to receive FTB Part B payments. These measures largely commence on 1 July 2015, with some transitional arrangements.

• Medicare and Patient Contribution changes will be made relating to patient contributions for doctor visits, indexation of fees and thresholds, and Medicare safety net arrangements.