Here are some tax changes in 2014 that will affect Small business owners.
Each small business’ circumstance will vary for end of financial year, and to this extent please contact our office for further information.
1. Individual tax rate changes from 1 July 2014
From 1st July 2014, those earning $180,000 and over will be taxed an additional 2% Temporary Budget Repair Levy. This applies to every dollar earned over $180,000.
2. Superannuation rates to increase to 9.5% from 1 July 2014
Superannuation rates will increase to 9.5% from 9.25% from 1 July 2014. It will remain at 9.5% until July 2018.
3. Instant asset write offs reduced to $1,000 from 1 January 2014
4. Accelerated depreciation for motor vehicles repealed from 1 January 2014
5. Increase in Medicare levy to 2% from 1 July 2014
6. Increase in 2015 Fringe Benefit Tax (FBT) rate & gross-up rates from 1 April 2014
Due to the increase in Medicare levy, a new FBT rate and also gross-up rates will apply from 1 April 2014 (i.e. the 2015 FBT year and following)
7. Changes to age-based concessional superannuation caps from 1 July 2014
The concessional (tax deductible) superannuation contribution caps for the 2013/14 year based on an individual’s age are:
•Age 60 and over on 30 June 2014 have a $35,000 contribution cap
•Age 59 and under on 30 June 2014 have a $25,000 contribution cap
The concessional superannuation caps for the 2014/15 year based on a person’s age have changed as follows:
•Age 49 and over on 30 June 2014 have a $35,000 contribution cap
•Age 48 and under on 30 June 2014 have a $30,000 contribution cap
The employer super guarantee contributions and salary sacrifice contributions are included in these caps.
8. Repeal of company loss carry back rules effective from the 2014 income year
The information provided here is of a general nature and should not be your only source of information.
