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The Lowe Lippmann Budget Update is a complimentary summary of the 2014-2015 Commonwealth Budget delivery on the evening of Tuesday 13th May 2014 by the Australian Federal Treasurer Joe Hockey.
       

The budget contained few tax and superannuation measures but included a range of measures, especially in relation to social security and health.

 

Here is a quick summary of the tax, superannuation, social security highlights:

 

Individuals and families

·         A three year temporary levy of 2% will be imposed on individuals' taxable income in excess of $180,000 pa, from 1 July 2014 until 30 June 2017.

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

·         Eligibility reforms to the Family Tax Benefit (FTB) Part A and Part B payments.

 

Companies

·         The Government confirmed that it was committed to cutting the company tax rate by 1.5 percentage points (to 28.5%) from 1 July 2015. For large companies, the reduction will offset the cost of the Government's 1.5% Paid Parental Leave levy.

 

Superannuation

·         Individuals will be given the option of withdrawing superannuation contributions in excess of the non-concessional contributions cap made from 1 July 2013 and any associated earnings, with these earnings to be taxed at the individual's marginal tax rate.

The schedule for increasing the superannuation guarantee rate to 12% will be changed.          

Please click here to read the full summary.
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