2013 The Year Ahead For Individuals
Written on the 9 February 2013
Super guarantee increases
On 1 July 2013, the first of the proposed incremental increases to superannuation will come into effect. The change will lift the superannuation guarantee rate to 9.25% for the 2013/2014 financial year. So, for an individual on a base salary of $60,000, the change will represent $150 extra compulsorily contributed to superannuation. The super guarantee rate is then proposed to increase every year until reaching 12% on 1 July 2019.
High income earners to pay higher tax rate on super
While not yet law, the controversial increase to the tax rate of super contributions for high income earners is due to come into effect on 1 July 2013. This will mean that if you earn over $300,000, you will pay 30% instead of 15% on superannuation contributions (only on the portion above $300,000).
Life is getting harder for non-residents. The big issue is the Budget announcement that locked non-residents out of the 50% CGT discount. This means that if you are not a resident of Australia and make money on the sale of an asset, you cannot access the 50% CGT discount from 8 May 2012. However, we have not seen the legislation supporting this change. In general, you can expect to see some of the tax benefits previously available to non-residents slowly whittled away as the Government seeks to achieve a surplus.
Paid parental leave for Dads
New paid parental leave for Dads comes into effect on 1 January 2013 providing two weeks of Government funded pay. The paid parental leave applies if the Dad or partner (including same sex couples) is an Australian resident, meets the work test, has an adjusted taxable income of $150,000 or less, and is on unpaid leave or not working during the two weeks. The entitlement to parental pay does not change your entitlement to leave itself.