Company Tax Rate
Company tax rate will reduce from 30% to 28.5% with effect form 1 July 2015. However, if a company has a taxable income greater than $5.0m, the 1.5% company tax rate cut will be largely offset by the imposition of the Paid Parental Leave Levy (PPLL).
The PPLL of 1.5% will be imposed on the taxable income of companies that exceeds $5m. That is, if a company had a taxable income of $7.0m then the company would be liable to pay the PPLL on $2.0m at a rate of 1.5%.
Research and Development Tax Incentive
A consequence of the reduction in the company tax rate of 1.5% is that the Government intends to maintain the relative value of the Research & Development Tax Incentive by reducing the rates of the refundable and non-refundable offsets by 1.5% effective from 1 July 2014.
Superannuation Guarantee Charge (SGC)
The SCG tax rate is set to increase from 9.25% to 9.5% with effect from 1 July 2014. The 9.5% SGC rate will remain in place until 30 June 2018 and will then increase 0.5% per annum until it reaches 12% on 1 July 2022.
Restart – Wage subsidy for mature age job seekers
From 1 July 2014 an employer may receive payments up to $10,000 for employing a mature age job seeker aged 50 and over. Payments commence after the employee has worked more than 6 months
$3,000 after 6 months of employment
$3,000 after 12 months of employment
$2,000 after 18 months of employment
$2,000 after 24 months of employment