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Medicare levy increase

The Medicare levy will increase from 1.5 per cent to 2 per cent from 1 July 2014.

The money raised from this increase will be placed into a National Disability Insurance Scheme (NDIS) fund.

Individuals could be affected if they are individual taxpayers, individuals and trustees who are in the pay as you go instalments system, trustees with liabilities or employers with fringe benefits tax impacts.

The government is expecting the 0.5 per cent increase to raise $3.2 billion towards funding for the NDIS in the first year. It is estimated that a total of $20 billion will be raised between 2014 and 2019.

The increase will see taxpayers who earn $30,000 a year pay an extra 41 cents per day.

Low- income earners will continue to receive relief from the Medicare levy through the low income thresholds for singles, families, seniors and pensioners. Current exemptions for the Medicare levy will also continue to be in place, including sickness allowance recipients.

Posted on 7 March '14 by , under Tax.

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The ATO reported that 45% of working Australians were not aware that they had multiple super accounts in 2016. Having multiple super accounts is particularly common for individuals who have had more than one job. If this is you, it is important to identify and manage your super accounts because having more than one can be costly as a result of account fees from multiple funds.To combat this, you may want to consolidate your super, which moves all your super into one account. Not only does this save on fees, but it also makes your super easier to manage and keep track of.

Before consolidating your super, it is important to do the following:

Research your funds' policy
Compare your active super accounts so you can make the right choice about which one you should close. Things to assess include:

  • Exit fees
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Check employer contributions
Changing funds may affect how much your employer contributes, as some employers contribute more to certain funds. Check your current accounts to see if changing funds will affect this. Once you have selected a super fund, regardless of whether you choose a new super fund or one of your existing ones, provide your employer with the details they need to pay super into your selected account.

Gather the relevant information
When consolidating your super, you will need to have the following details ready:

  • Your tax file number.
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  • Your fund's superannuation product identification number (SPIN).
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  • Details of your previous fund.

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