Income Tax

Increased tax rate starts now

Remember that from 1 July 2014 the Medicare Levy goes to 2% (from 1.5%) so the marginal tax rates all go up.

And remember we are doing this to afford the NDIS… Raising $3.3 billion a year to “afford” a $9-14 billion a year program… Thanks greatest Treasurer in the world…

But you don’t have to wait 3 months.

From 1 April 2014 the FBT rate goes to 47% (up from 46.5%). This also means the FBT gross up rates go to

Type 2 gross-up rate 1.8868.

Type 1 gross-up rate 2.0802.

And remember, going three months early saves a potential loss of $40 million of the Federal Governments $440 billion a year (or .00001). Love the attention to detail…

By Ken Mansell

As a stay at home Dad most of the week this is my way of pretending I am still the tax counsel of ASX and SEC listed companies, working at big 4 firms, working at the Federal Treasury, on the Henry Review and at Parliament House for the previous government.

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