According to Federal Budget 2014-2015 announced earlier, there are a couple of tax related changes which will influence personal and corporate taxpayers. In the newsletter this month from CLY Tax Accountants & Bookkeepers Ringwood, we are going to highlight some of the Tax changes, which might be beneficial for you or your business in Ringwood, Croydon, Lilydale or surrounding suburbs if you are aware of that.
Personal tax for wage earner or sole trader
• A 2% Temporary Budget Repair Levy is introduced for high income earners whose individual’s taxable income exceeds $180,000. The levy will apply from 1 July 2014 through to 30 June 2017. This could effectively make the top tax rate to 50.5% (including Medicare levy and levy surcharge). Therefore, now is the RIGHT time to review your business structure, especially for the high income sole traders, to find a better way to save your heaps of money on tax and maximise your profit in the near future.
• Two tax offsets will be abolished from 1 July 2014, i.e. the Dependent Spouse tax offset and Matured Age Worker tax offset. This could be bad news for some people who claimed that before, such as families with only one income earner or people born before 1 July 1957. If you are getting these tax benefits now and worry about your future tax planning, feel free to contact us for help. We are more than happy to assist you to modify or re-do your future tax plan to make sure that you won’t pay unnecessary tax and your family is well looked after by our experienced tax professionals.
Corporate tax for Company
• The government announced that the Company Tax Rate will be reduced from 30% to 28.5% from 1 July 2015. For those small business owners who are still considering wondering between different business structures and can’t make the decision, now the tax benefit from doing business as a company is definitely increased. If you want to change the business structure now, we strongly recommend you to consult us before taking any action because there are still many factors (e.g. pros and cons) needed to be considered for comparison.
Small or Medium business owners
• For those small or medium business owners hiring employees, please be aware that the Superannuation Guarantee rate will be raised to 9.5% from 1 July 2014 until 30 June 2018. Make sure your bookkeeping and tax are done properly to reflect the change and feel free to contact us if you need any help.
If you are interested in any of the highlight points above and want to know further details or anything else related to Federal Budget 2014-2015, we are always happy to Contact our professional Tax Agents, Accountants or Bookkeepers in Ringwood, Croydon or Lilydale for a further discussion.
The information provided in the newsletter is just general information for Federal Budget 2014-2015, which cannot be solely relied on for making any tax or business decision. The information discussed in this newsletter does not consider anyone’s specific personal or business circumstance, and may not be suitable for all types of individual or business.