The federal budget was delivered on 13 May 2014 presented by the Treasurer, the Hon Joe Hockey MP. I have listed below some of the main changes relating to income tax. (These tax reforms are yet to be imposed by legislation)
Temporary Budget Repair Levy (TBRL)
• Effective from 1 July 2014 to 30 June 2017
• Payable by individuals whose taxable income exceeds $180,000 at a rate of 2% on the excess over $180,000
Example of additional tax payable under the TBRL is summarised in the following table:
Tax Changes from 1 July 2013
• Family Medicare levy income threshold in 2013/14 will be $34,367
• Additional amount for dependent child will be $3,156
• No change for individuals and pensioners.3
Tax Changes from 1 July 2014
• Medicare levy will increase from 1.5% to 2% from 1 July 2014
• The Dependent Spouse and Mature Age Worker Tax Offsets will be abolished from 1 July 2014
• 2013/14 tax year will be the last year in which these offsets will be available
• 2013/14 – spouses born before 1 July 1952, ATI less than $150,000 and spouses income $9,974 (2012-13)
Tax Changes from 1 July 2015
• $7 co-payment for GP visits, blood test and x-rays for the first 10 visits each year for children under 16 years and concession card holders
• $5 will go to medical research
• State governments to be allowed to charge for ER visits for minor illnesses
• $2 billion to be cut from federal funding of public hospitals
