In individual tax return:
From 1 July 2014, the Medicare levy will increase by half a percentage point, going from 1.5 per cent to 2 per cent.
The reportable fringe benefits (FBT) amount of $3,738 will increase to $3,773 as a consequence of the FBT rate increasing from 46.5% to 47% from 1 April 2014.
The calculation spouse’s ATI, the multiplier of FBT has changed from 0.535 to 0.53.
In non-individual return:
The increase in the Medicare levy will also apply to the rate of no-TFN-quoted contributions tax (paid by superannuation entities) and will increase this rate by 0.5%
At the same time (from 1 July 2014) the government has applied a 2% Temporary Budget Repair Levy to the rate of no-TFN-quoted contributions tax.
The no-TFN-quoted contributions tax rate, now reflects the increase of 0.5% for non-complying SMSFs and 2.5% for complying SMSFs to the no-TFN-quoted contributions tax rate, giving a change of:
- 1.5% to 2% for non-complying SMSFs
- 31.5% to 34% for complying SMSFs