Superannuation rate increase delayed: Budget update

The Minerals Resource Rent Tax Repeal and Other Measures Bill 2014 was passed by both Houses of Parliament on 2 September 2014 and is awaiting Royal Assent.

The amendments include:

  • Delaying increases to the superannuation rate until 2021
  • Retaining the low income superannuation contribution until June 30, 2017
  • Retaining the income support bonus until December 31, 2016
  • Retaining the schoolkids bonus until December 31 2016, and means-testing it to give it to families on an annual household income up to $100,000
  • abolition of loss-carry back provisions for small business
  • abolition of vehicle accelerated depreciation
  • abolition of a ¬≠geothermal exploration tax break
  • reducing the instant asset write-off threshold from $5,000 to $1,000.

The superannuation guarantee rate increased from 9.25 per cent to 9.5 per cent on July 1 2014.

It will increase to 10% on 1 July 2021 then increase 0.5% yearly from 1 July 2022 until 1 July 2025.

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