|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.
· 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.
· 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.