What Changed On July 1, 2013

  • The minimum rate of Superannuation Guarantee Contributions increased from 9% to 9.25%. Each year this rate will continue to increase until it reaches 12% from 1 July 2019.
  • The upper age limit for Super Guarantee has been removed which means that eligible employees aged 70 and over will now receive Super Guarantee.
  • For those aged 60 and over, you will be able to contribute more to superannuation with the concessional contributions cap increasing to $35,000 (up from $25,000). The concessional contributions cap for those aged 50 and over will increase to $35,000 from 1 July 2014.
  • An increased tax rate applies on contributions made by high income earners with a ‘total income’ in excess of $300,000.
  • The net medical expenses tax offset (NMETO) will be abolished although there will be a transitional period for those currently claiming the offset. The NMETO previously allowed you to claim a tax offset for medical expenses above the threshold ($5,000 for 2012/13 and $2,060 for 2011/12).
  • For the 2013 income year, companies will be able to carry back up to $1m of tax losses incurred in the 2013 income year to recoup tax paid for the 2012 income year. The refundable tax offset that can be claimed is limited to the company’s franking account balance for that year.

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IMPORTANT DISCLAIMER:This newsletter is issued as a guide to clients and for their private information. This newsletter does not constitute advice. Clients should not act solely on the basis of the material contained in this newsletter. Items herein are general comments only and do not convey advice per se. Also changes in legislation may occur quickly. We therefore recommend that our formal advice be sought before acting in any of these areas.