Stylized newspaper and pink piggy bank.

The change of government in the September 2013 Federal Election always promised a shake-up for tax and superannuation rules, so it should come as no surprise that there are some pretty significant tax changes coming in 2014 and beyond. Below are nine of the more noticeable superannuation and tax changes planned for the new year. While there are some good wins for taxpayers, the abolition of the small business instant write-off of up to $6,500 needs to be acted on now if you are eligible, as it is possibly set to take effect from January 1, 2014.

  1. Abandoning the legislative change to disallow the statutory FBT method – a big win for any employees with novated leases who don’t use their vehicles for work purposes.
  2. No $2,000 cap on self-education expenses – a big win in this area.
  3. Company tax rate to be cut to 28.5% from 1 July 2015.
  4. Abolishing the carbon tax and mining tax – assuming the Senate co-operates of course.
  5. Tax loss carry-back measures to be abolished.
  6. Small business instant write-off of $6,500 (net of GST) to be abolished – believed to be taking effect from 1 January 2014 so any businesses wishing to take advantage of this need to act now.
  7. Accelerated depreciation for motor vehicles for small business (currently $5,000) to be abolished.
  8. 1.5% levy on companies with taxable income over $5m to fund a Paid Parental Leave Scheme from 1 July 2015.
  9. Superannuation guarantee increase from 9% to 12% to be slowed and implemented in 2021 rather than 2019.

By Jennifer Lowe

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