Tax update September 2014

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Running Time: 7:18

Date: 01/09/2014

Michael Jones reviews the tax laws that have come into effect since the Federal Budget in May.

Armed with his list of tax changes already passed into law, Michael Jones, of Cummings Flavel McCormack begins with some bad news - the budget repair levy has been introduced, with the highest marginal tax rate now sitting at 49% when you include the increase in the Medicare levy. But, Michael reminds us, it's only a temporary tax…or is it?

Also, despite the Fringe Benefit Tax increasing to 49% in April 2015, Michael says there are still numerous benefits of buying a car through a business - if it's done correctly.

The superannuation guarantee has increased to 9.5% and employers now must make contributions electronically. Plus, look out for a whole new regime for penalties introduced by the ATO if you get things wrong.

And the ATO no longer distributes cheques - so to receive a refund, you must supply your bank details when you lodge electronically.

There's plenty more coming in tax reform, so stay tuned!