Budget May update

Budget 2014

The main changes affecting the tax of small business

The government confirmed that it was committed to cutting the company tax rate by 1.5 percentage points (to 28.5%) from 1 July 2015. For large companies, the reduction will offset the cost of the Government’s 1.5% Paid Parental Leave levy.

Super guarantee rate SGL to go to 9.5% on 1 July 2014 on wages

Businesses hiring over 50s to get cash incentive Businesses could get up to $10,000 if they hire a job seeker aged 50 or older in a wage subsidy program announced in the Budget, but the Mature Age Worker Tax Offset will be scrapped.

Reintroduction of fuel excise indexation Funding for road infrastructure will be sourced from reintroducing a biannual indexation by the consumer price index of excise duty for all fuels (except aviation fuels). The government said this will generate $2.2 billion over forward estimates. The excise has been locked at 38.1 cents a litre since the Coalition dumped indexation in 2001. The re-indexation of fuel will start from August 1, 2014.