The increase in the Medicare levy from 1.5 per cent to 2 per cent, will effectively bring the top marginal tax rate to 47 per cent. This will not only impact on individual taxpayers but will have a flow on effect to small businesses. A number of tax laws that businesses regularly comply with apply the top marginal income rate as a penalty rate of tax.
As a result, the following common tax items will be subject to tax of 47 per cent, up from the previous 46.5 per cent:
– Fringe Benefits Tax (FBT)
– TFN and ABN Withholding Tax
– Family Trust Distributions Tax
– Trusts, where Section 99A applies to retained income
– Excess non-concessional contributions to super (with tax on excess concessional contributions to increase to 32%)
Posted on 16 May '13 by editor, under News AUS. No Comments.
The increase in the Medicare levy from 1.5 per cent to 2 per cent, will effectively bring the top marginal tax rate to 47 per cent. This will not only impact on individual taxpayers but will have a flow on effect to small businesses. A number of tax laws that businesses regularly comply with apply the top marginal income rate as a penalty rate of tax.
As a result, the following common tax items will be subject to tax of 47 per cent, up from the previous 46.5 per cent:
– Fringe Benefits Tax (FBT)
– TFN and ABN Withholding Tax
– Family Trust Distributions Tax
– Trusts, where Section 99A applies to retained income
– Excess non-concessional contributions to super (with tax on excess concessional contributions to increase to 32%)
Posted on 16 May '13 by editor, under News AUS. No Comments.
The 2013 Federal Budget, released on Tuesday contained a number of significant taxation changes that will impact on individual taxpayers.
Personal Income Tax Rates
Although individual income tax rates have remained unchanged, changes that were due to apply from 1 July 2015 have been deferred. Initially, the tax free threshold was set to increase from $18,200 to $19,400. The current legislated rates applicable for the 2013/14 income year are set to remain in place until 2017/18.
Tax rates for non-residents
For the 2013/14 income year, non residents will pay a flat rate of 32.5 per cent on all taxable income up to $80,000. For taxable income exceeding $80,000, the marginal tax rate for non-residents are the same as those for resident individuals. Proposed legislation to remove the capital gains tax discount for non-residents seems to be on schedule to be introduced in the final few weeks of Parliament. Finally, non-residents will be subject to a non-final withholding tax of 10 per cent of the proceeds from the sale of certain taxable Australian property with effect from 1 July 2016.
Posted on 16 May '13 by editor, under News AUS. No Comments.
The 2013 Federal Budget, released on Tuesday contained a number of significant taxation changes that will impact on individual taxpayers.
Personal Income Tax Rates
Although individual income tax rates have remained unchanged, changes that were due to apply from 1 July 2015 have been deferred. Initially, the tax free threshold was set to increase from $18,200 to $19,400. The current legislated rates applicable for the 2013/14 income year are set to remain in place until 2017/18.
Tax rates for non-residents
For the 2013/14 income year, non residents will pay a flat rate of 32.5 per cent on all taxable income up to $80,000. For taxable income exceeding $80,000, the marginal tax rate for non-residents are the same as those for resident individuals. Proposed legislation to remove the capital gains tax discount for non-residents seems to be on schedule to be introduced in the final few weeks of Parliament. Finally, non-residents will be subject to a non-final withholding tax of 10 per cent of the proceeds from the sale of certain taxable Australian property with effect from 1 July 2016.
Posted on 16 May '13 by editor, under News AUS. No Comments.
In an unexpected announcement, the Government has now made it a requirement for all large entities in the PAYG instalment system to make monthly PAYG income tax instalments. The monthly PAYG instalment system will therefore be extended to include trusts, superannuation funds, sole traders and large investors.
The system will be phased in between 1 January 2014 and 1 January 2017 and will come into force as follows:
-Corporate tax Entity with a turnover over $1 billion: 1 January 2014
-Corporate tax entity with turnover over $100 million: 1 January 2015
– Corporate tax entity with a turnover over $20 million and other PAYG entities with a turnover over $1 billion: 1 January 2016
– Other PAYG entities with a turnover $20 billion: 1 January 2017.
Posted on 16 May '13 by editor, under News AUS. No Comments.
In an unexpected announcement, the Government has now made it a requirement for all large entities in the PAYG instalment system to make monthly PAYG income tax instalments. The monthly PAYG instalment system will therefore be extended to include trusts, superannuation funds, sole traders and large investors.
The system will be phased in between 1 January 2014 and 1 January 2017 and will come into force as follows:
-Corporate tax Entity with a turnover over $1 billion: 1 January 2014
-Corporate tax entity with turnover over $100 million: 1 January 2015
– Corporate tax entity with a turnover over $20 million and other PAYG entities with a turnover over $1 billion: 1 January 2016
– Other PAYG entities with a turnover $20 billion: 1 January 2017.
Posted on 16 May '13 by editor, under News AUS. No Comments.
The Fair Work Commission has been given $21.4 million over the next four years to fund legal remedies for victims of workplace bullying.
A recent report by the Productivity Commission has highlighted the significant impact of bullying in the workplace, which could cost an estimated $36 billion in productivity each year.
The Fair Work Commission is set to begin hearing bullying complaints from 1 July 2013- although the accompanying Fair Work Amendment legislation is yet to pass through Parliament.
Following the proposed legislation, the Fair Work Commission will have the power to intervene in bullying cases where the complaint could not be resolved between the parties involved.
Small businesses will be updated by business groups in regards to the bullying requirements in the lead up to 1 July.
Posted on 16 May '13 by editor, under News AUS. No Comments.
The Fair Work Commission has been given $21.4 million over the next four years to fund legal remedies for victims of workplace bullying.
A recent report by the Productivity Commission has highlighted the significant impact of bullying in the workplace, which could cost an estimated $36 billion in productivity each year.
The Fair Work Commission is set to begin hearing bullying complaints from 1 July 2013- although the accompanying Fair Work Amendment legislation is yet to pass through Parliament.
Following the proposed legislation, the Fair Work Commission will have the power to intervene in bullying cases where the complaint could not be resolved between the parties involved.
Small businesses will be updated by business groups in regards to the bullying requirements in the lead up to 1 July.
Posted on 16 May '13 by editor, under News AUS. No Comments.
Various measures have been introduced by the Government to close the loophole that enables sophisticated investors to engage in double claiming from franking credits.
Under the proposed changes that are due to come into effect from 1 July 2013, the Government will ensure that when an investor sells shares ‘ex-dividend’, and then immediately buys equivalent shares which still carry the dividend entitlement (known as ‘cum-dividend’ shares), the investor will only be able to claim one set of franking credits. The investor will not be able to claim franking credits otherwise available in respect of one of the two dividend entitlements.
The proposed changes will focus on tightening the 45 day ‘holding period rules’, and on the basis of these changes will not affect small investors with annual franking credit entitlements that do not exceed $5,000.
Posted on 16 May '13 by editor, under News AUS. No Comments.
Various measures have been introduced by the Government to close the loophole that enables sophisticated investors to engage in double claiming from franking credits.
Under the proposed changes that are due to come into effect from 1 July 2013, the Government will ensure that when an investor sells shares ‘ex-dividend’, and then immediately buys equivalent shares which still carry the dividend entitlement (known as ‘cum-dividend’ shares), the investor will only be able to claim one set of franking credits. The investor will not be able to claim franking credits otherwise available in respect of one of the two dividend entitlements.
The proposed changes will focus on tightening the 45 day ‘holding period rules’, and on the basis of these changes will not affect small investors with annual franking credit entitlements that do not exceed $5,000.
Posted on 16 May '13 by editor, under News AUS. No Comments.
