The timetable to increase the superannuation guarantee (SG) to 12% has been amended. Instead of pausing at 9.25% as had previously been announced, the SG rate will now increase to 9.5% on 1 July 2014 and remain at this level until 30 June 2018. The SG rate will then increase each year by 0.5% until it reaches 12% in 2022-23.
|Financial year||SG Rate|
Even though the SG was legislated to go to 9.5% on 1 July 2014, the expectation was that the SG rate would remain frozen at 9.25% in accordance with legislation that was introduced (but not passed) in late 2013.
Impact on you
There is now certainty over the amount of superannuation you can expect to receive from 1 July this year.
Increase in top marginal tax rate
From 1 July 2014, and for the next three financial years, the top marginal tax rate (which applies to incomes above $180,000) will increase by two percentage points to 47% plus Medicare levy (which is already legislated to increase to 2% from 1 July 2014).
With Medicare levy included, the top marginal rate will be 49% from 1 July 2014 to 30 June 2017.
Personal income tax rates and thresholds (not including the Medicare levy)