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2014 Budget summary

PRESENTATION TITLE | 00 MONTH YEAR 2

• <Adviser name> is not a registered tax agent.If you wish to rely on this determine your personal tax obligations you should seek advice from a Registered Tax Agent.

Disclaimer

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TAXATION

• Temporary Budget Repair Levy

‒ Additional levy of 2% will be payable on taxable incomes over $180,000pa

‒ Top marginal tax rate to 49%

‒ Fringe Benefit Tax (FBT) rate will increase to 49%

‒ From 1 July 2017, top marginal tax rate returns to 47%

2014 FEDERAL BUDGET ANALYSIS

13 May 2014

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TAXATION

• HELP debt changes

‒ 1 June 2016 interest accrued @ 10 year Government bond rate, maximum rate of 6%pa

‒ 1 July 2016, HELP debt repayments from a lower income level

2014 FEDERAL BUDGET ANALYSIS

13 May 2014

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TAXATION

• Tax offsets to be abolished

‒ Dependent Spouse and Mature Age Worker Tax offsets to cease from 1 July 2014.

2014 FEDERAL BUDGET ANALYSIS

13 May 2014

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TAXATION

‒ Company tax rate to reduce by 1.5% to 28.5% from 1 July 2015.

‒ Introduction of fuel excise indexation by CPI.

2014 FEDERAL BUDGET ANALYSIS

13 May 2014

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SUPERANNUATION

• Excess non-concessional contribution (NCC)

‒ Option for excess from 1 July 2013 to withdraw those NCC’s that exceed the cap plus the related earnings on the excess

‒ No tax on the excess amount withdrawn ‒ Tax on earnings @ individual’s marginal tax rate

‒ If no election is made, the excess will be taxed under the existing regime @ top marginal tax rate

2014 FEDERAL BUDGET ANALYSIS

13 May 2014

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SUPERANNUATION

• Revised SG rate increase

‒ Increase to 9.5% will take effect on 1 July 2014

‒ Increase will remain at 9.5% for four years

‒ From 1 July 2018, it will increase by 0.5%pa, before reaching 12% on 1 July 2022.

2014 FEDERAL BUDGET ANALYSIS

13 May 2014

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SOCIAL SECURITY

• Increase in Age Pension age to 70

‒ Age Pension will increase to 67.5 from 1 July 2025 as previously legislated. It will then continue to rise by six months every two years, until the pension age reaches 70 by 2035

‒ Currently the Age Pension age is due to increase from 65 starting on 1 July 2017, and gradually reach 67 by 1 July 2023

2014 FEDERAL BUDGET ANALYSIS

13 May 2014

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SOCIAL SECURITY

• Increasing cost of medical care

‒ A contribution of $7 may be charged from 1 July 2015 for certain services.

‒ Relief for holders of concessions cards and children under 16 years of age

2014 FEDERAL BUDGET ANALYSIS

13 May 2014

PRESENTATION TITLE | 00 MONTH YEAR 11

SOCIAL SECURITY

• Family Payment Reform from 1 July 2015

‒ Changes to payment rates

‒ Changes to eligibility thresholds

‒ Changes to eligibility

‒ Other Changes

2014 FEDERAL BUDGET ANALYSIS

13 May 2014

PRESENTATION TITLE | 00 MONTH YEAR 12

SOCIAL SECURITY

• Commonwealth Seniors Health Card (CSHC) changes

‒ Current thresholds $50K singles $80K couples to be indexed from 20 September 2014 to Consumer Price Index

‒ From 1 January 2015, the definition of income for the card will be expanded to include income from superannuation pensions assessed at pre-determined rates (deemed)

‒ Grandfathering rules will apply.

‒ 20 September 2014, the seniors supplement will no longer be payable. However, Clean Energy Supplement remains payable.

2014 FEDERAL BUDGET ANALYSIS

13 May 2014

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