July 1 saw many changes being introduced for the new financial year. Some of these changes may affect your accounting or your financial situation as well. Here are some of the biggest changes that rolled in that may affect you:
High income earners (those earning more than $180,000) will pay an extra 2 per cent tax on what they earn over $180,000 for the next three years. This is referred to as the Temporary Debt Levy. This takes their marginal tax rate to 49 per cent including the Medicare levy, which will rise to 2 percent.
It’s not all doom and gloom as high income earners may like to take advantage of the concessional superannuation contributions cap which will increase to $30,000 or $35,000 if you’re aged over 50. This means you’ll pay only 15 per cent tax on those extra contributions.
The employer superannuation guarantee also rose from 9.25 percent to 9.5 percent.
For some high income earners, the costs of aged care may also go up. Individuals earning more than $24,700 may be asked to pay part of their nursing home costs (up to $5,000 a year for part-pensioners or $10,000 a year for self-funded retirees).
You can also expect to see the price of gas increasing by 17 per cent.
If you’re unsure of where all your money is going during tax time, this year you will now be given a tax receipt to show where your money is going to make the tax system more transparent. The receipt will be issued to anyone with an annual taxable income of more that $100 who lodges their tax return within 18 months.
At work, you can expect to see national minimum wage go up to $16.87 any hour or $640.90 a week.
If you have any questions about any of this, please don’t hesitate to get in touch with the team at Fortis Accounting Partners. You can reach us on 02 9267 0108, or via info@exemplary-financial.flywheelsites.com.
