During our Pre FYE and Post Budget Update breakfast in May, we made mention of the fact that there were ‘Labor Government legislated tax rate changes’ due to occur on 1 July with an increase in the tax free threshold to $19,400 and an increase in the second marginal tax rate band from 32.5% to 33%.
While the Government had introduced a bill to remove this designated increase, it had not passed prior to the Federal Budget Tax Brief being delivered.
We can now confirm that the Labor 2013-14 Budget Savings (Measures No1) Bill 2014 has been passed which means there will be no change to individual tax rates on 1 July 2015.
Further, the Government has repealed the Dependent Spouse Tax Offset with effect from 1 July 2014. However, for individuals with a disabled spouse, the ‘Dependant (invalid and carer) tax offset’ has been expanded.
Please contact your usual Hanrick Curran adviser if you have any queries about these announcements.
Please note that this publication is intended to provide a general summary and should not be relied upon as a substitute for personal advice.