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What is changing in the 2014-15 Financial Year?

With the end of one financial year and the beginning of a new one, it is always important to know what changes are taking place. This financial year is no different with a number of important changes occurring in 2014/15, which may affect your finances.
changes
Tax Changes

While the marginal tax rate remains largely unchanged in 2014/15, the federal government’s debt levy will come into place, adding an extra 2% tax for those earning $180,000 and above. This will push the top marginal tax bracket to 47% or 49% when including the Medicare levy.

The measure, which passed the Senate late last financial year, will raise around $3.2 billion which will go towards reducing the federal budget deficit.
Elsewhere, the Medicare levy will increase from 1.5% to 2.0%. The increased levy will go towards the DisablityCare Australia Fund.

Superannuation Changes 

Concessional Contributions 

From 1 July 2014, the superannuation concessional contributions cap (the contributions you can make to your super from pre-tax earnings, will increase from $25,000 to $30,000. For people aged 60 and over, the cap will increase to $35,000.

From 2015, those aged 50 and above will be able to contribute up to $35,000 per year.

Non-concessional Contributions 

Non-concessional contributions (contributions you can make from your post-tax earnings) will increase from $150,000 to $180,000.

Employer Contributions

The new financial year will also see compulsory employer contributions increase from 9.25% to 9.5%. It is set to increase steadily each year until it reaches 12% in 2022.

Removal of Stamp Duty in Victoria

As reported last month, The Victorian Government will remove stamp duty on life insurance and life insurance related policies, saving consumers $16 million over 4 years. Currently states pay a range of 3% to 11% in stamp duty for life insurance.

Sources:

ATO:
Concessional contributions cap
Individual income tax rates

IFA:
Life insurance stamp duty axed in Victoria

About Russell Cain

Russell Cain(Can be on found on Google +) is the CEO of xLife Pty Ltd, an award winning life insurance comparison service which incorporates the Life Insurance Direct and xLife brands. He has over 10 years experience in the accounting and finance industry as well as over 15 years experience in running small business. It was in 2005 when running one of these small businesses that xLife first materialised as Russell realised the importance of sound financial advice, high level of customer service and the important of openness and transparency with customers. In his spare time, Russell is an avid property investor and home renovator, enjoys cycling and playing squash and also participates in an entrepreneurial mentoring program where he currently helps mentor small business owners to help achieve their goals.