Budget Night 2014
The Federal Budget 2014-15 was presented to Federal Parliament on Tuesday 13 May 2014 by Treasurer Joe Hockey.
The following content pages have been updated to include the impact of budget proposals:
- Tax Rates (Resident) 2014-15, 2015-16, 2016-17 – introduction of 2% levy on high income earners
- Tax Rates (Non-Resident) 2014-15, 2015-16, 2016-17 – introduction of 2% levy on high income earners
- Dependent Spouse Offset – removal 1 July 2014
- Invalid and Carer Tax Offset – reduced income limit
- Mature Age Worker Tax Offset – removal 1 July 2014
- Medicare Levy – adjustment of family low income thresholds
- Fringe Benefits Tax – increase rate to 49% and adjustment of non-profit caps
- Superannuation Guarantee – revised timetable for increase to 12%
- R&D Tax Concessions – reduction of offset by 1.5%
- Excess non-concessional super contributions – proposal for withdrawal and tax-at-marginal rates scheme
- Company tax rates – reduction by 1.5% from 1 July 2015 and Exploration Development Incentive from 1 July 2014
- Age Pension – age increase, deeming thresholds, income & assets indexation, Health Card, Senior Supplement
- Family Tax Benefits – a number of changes to existing entitlements and the introduction of a new single parent allowance.
- Student HECS-HELP program – reduction of income repayment thresholds, a 2% repayment band, a changed method of indexation and removal of loan fees from 1 July 2015.
- Re-introduction of fuel tax indexation (to CPI) twice a year – commencing 1 August 2014. See PWC Tax Alert – 16 May 2014.
The Treasurer’s Budget Night Speech
Key tax announcements:
From 1 July 2014 Temporary Budget Repair Levy will increase the top marginal tax rate by 2% for people earning more than $180,000 a year.
- From September 2017, increases in pensions will be linked twice a year to inflation.
- Asset and associated income test thresholds will be indexed between now and 2017, but then remain at fixed levels for three years.
- Current family assistance rates will be kept at the same level for two years. Thresholds for the Private Health Insurance Rebate and most Medicare fees will also be paused.
- The Family Tax Benefit Part B income threshold will be reduced to $100,000. For a typical family receiving the base rate of Family Tax Benefit Part A, payments will start to reduce when family income exceeds $94,316 per year.
- From next year, unemployed people under 25 will get Youth Allowance, not Newstart. People under 30 will wait up to six months before getting unemployment benefits, and then will have to participate in Work for the Dole, to be eligible for income support.
- For Australians over 50, a payment of up to $10,000 to a business that employs an Australian over the age of 50 who has been on unemployment benefits or the Disability Support Pension for six months.
- Our changes to higher education will allow universities to set their own tuition fees from 2016. For students already studying, existing arrangements will remain until the end of 2020.
- Establishment of a $20 billion Medical Research Future Fund to be “within six years, the biggest medical research endowment fund in the world”. The Medical Research Future Fund will receive all the savings from the introduction of a $7 Medicare co‑contribution from 1 July 2015, changes to the Pharmaceutical Benefits Scheme and other changes in the Health Budget, until the Fund reaches $20 billion. (See detailed explanation here.)
- the Government is re‑introducing fuel indexation where every dollar raised by the increases will be linked by law to the road‑building budget.
- CCH Budget Night Report 2014
- ICAA – Thomson Reuters Federal Budget Tax Bulletin
- PWC – Budget 2014-15 – Is It Crunch Time?
- Department of Human Services – an alphabetical listing of all 2014-15 budget measures relevant to the Department
- Not For Profits – Thomson Geer Lawyers – Charities Alert May 2014
- Parliamentary Library’s Budget Review 2014–15 – background research papers for each policy area
This page was last modified on 1 Sept 2017