August 2013 Newsletter 

In this edition:

Welcome

Legislation Update

Tax Rates Update

First Home and Non-First Home Buyers: What's in it for me?

Loss Carry Back for Companies

Superannuation and Powers of Attorney: Part Three

In the closing months of the 2013 financial year, a number of key legislative changes were passed by parliament, while others received Royal Assent.

Some of the key legislative changes are outlined below:

The expanded director penalty regime received Royal Assent.
Essentially, the changes expand the director penalty regime to:



• Include superannuation guarantee amounts;
• Ensure that directors cannot discharge their penalties by placing a company into liquidation when it has unpaid PAYG withholding or superannuation dating back more than three months; and
• May make directors and their associates liable to pay withholding non-compliance tax where they have claimed unpaid PAYG withholding in their personal tax returns.

Indexation of the superannuation concessional contributions cap was temporarily frozen.

This means that the cap will remain fixed at $25,000 until 2015 (although the concessional contributions cap for people aged 60 years or over has been increased to $35,000 for the 2013/14 year).

Eligible individuals will now have the opportunity to have 85% of excess contributions of $10,000 or less refunded to them.
Under these measures, the full amount of the excess contributions will now be assessed as taxable income, offset by a 15% refundable tax offset.

Individuals earning income of more than $300,000 will now have their contributions tax rate increased from 15% to 30% (excluding Medicare levy).

Under this measure, "income" will include taxable income, concessional superannuation contributions, fringe benefits, net investment losses, target foreign income and tax-free government pensions and benefits, but will not include child support.

From 1 July 2014, the rate of the Medicare levy will increase from 1.5% to 2% of taxable income.
The money raised from the increase will be used to fund the National Disability Insurance Scheme (NDIS).

If you have any questions, or are unsure as to whether the new rules apply to your business, you should contact your Goodwin Chivas & Co advisor.