As part of the 2014-15 Federal budget the Government introduced a Temporary Budget Repair Levy.
The ATO states that Individual taxpayers with a taxable income of more than $180,000 per year will have additional tax withheld by their employer, starting from 1 July 2014.
The levy is payable at a rate of two per cent of each dollar of a taxpayer’s taxable income over $180,000.
It will apply to both resident and non-resident individuals from 1 July 2014 and applies to the 2014-2015, 2015-16 and 2016-17 income years.
In some cases the levy is payable even if you have a taxable income of $180,000 or less. For example, the unearned income of resident individuals under the age of 18 is subject to special rates and will include additional amount for the levy on income greater than $416.
The tax tables have been updated so that employers can withhold the appropriate amount of tax and levy.
The levy will cease to apply from 1 July 2017.
The temporary budget repair levy will apply to:
- Individual taxpayers.
- Unearned income of minors.
- Trustees liable to taxation as individuals.
- Trustees liable under section 99A.
- Trustees liable under subsection 98(4).
- Non-complying superannuation funds.
- Non-arm’s length component of the taxable income of a superannuation fund.
- Non-complying approved deposit funds.
- Non-arm’s length component of the taxable income of an approved deposit fund.
- Non-arm’s length component of the taxable income of a pooled superannuation trust.
- Non-TFN contributions income to a superannuation fund or retirement savings account provider.
- Share of the net income of a partnership attributable to a partner not having control and disposal of that income.
- Family trust distribution tax.
- Fringe Benefits Tax (commencing 1 April 2015).
- Income tax on bearer debentures.
- First home saver accounts misuse tax.
- TFN withholding tax for employee share schemes.
- Departing Australia Superannuation Payments tax (3% increase for payments from a taxed superannuation fund and 2% increase for payments from an untaxed superannuation fund).
- Excess non-concessional contributions tax.
- Excess untaxed roll-over amounts tax.
- Trustee beneficiary non-disclosure tax No 1.
- Trustee beneficiary non-disclosure tax No 2.
- Interest on non-resident trust distributions.
- Untainting tax.
- Trust recoupment tax.
If you have any queries about the temporary budget repair levy, please feel free to get in touch with the team here at Fortis Accounting Partners. You can reach us on 02 9267 0108, or via info@exemplary-financial.flywheelsites.com. Alternatively, you can find more information on the ATO website.
