Your Hip Pocket - What's Coming in 2013?
Tue 11th Dec, 2012
2013 will bring some significant changes, some of which may impact your hip pocket.
From 1 July 2013, your business will face increased superannuation costs.
From this date, the 9% superannuation guarantee (SG) rate, which has been in place since the introduction of compulsory employer superannuation way back in 1992, will increase to 9.25%. The rate will then increase incrementally to 12% over the following years as follows:
|1st July 1992 — 30th June 2013||9%|
|1st July 2013 — 30th June 2014||9.25%|
|1st July 2014 — 30th June 2015||9.50%|
|1st July 2015 — 30th June 2016||10%|
|1st July 2016 — 30th June 2017||10.50%|
|1st July 2017 — 30th June 2018||11%|
|1st July 2018 — 30th June 2019||11.50%|
|1st July 2019 onwards||12%|
While some employers will incorporate these rate increases into existing employee salary packages (i.e. decreasing take-home pay to compensate for the increase in SG) other employers may elect to absorb the full cost themselves by increasing the overall employee salary package by .25%. Either way, it is an issue to be aware of and plan ahead for as the date nears.
Also on the superannuation front, from 1 July 2013, employers will be required to make SG contributions for employees aged 70 or over (provided none of the existing exemptions apply, such as they earn salary of less than $450 per month). As SG has never been payable for workers of this age, this change will represent an additional cost to business, per affected worker.
Business Tax Relief
An instant cash refund could be on the way if your business makes a loss this financial year. When your business lodges its tax return next year, you can offset any loss made in 2012/2013 against income in 2011/2012… and get previously paid tax refunded in cash, subject to certain conditions.
Personal Cash Injection
On a personal level, if you're eligible for Family Tax Benefit Part A, then you can look forward to starting the year with an instant cash handout. From 1 January 2013, the Schoolkids Bonus replaces the Education Tax Refund. The Bonus, which will be paid automatically into eligible recipient bank accounts, is worth:
- $410 for each child in primary school per year; and
- $820 for each child in high school per year.
The non-taxable Bonus will be payable in two instalments (January and July each year — with the first payment due from 9 January 2013). To be eligible for the Schoolkids Bonus, you must either be a parent or carer who receives Family Tax Benefit Part A.
In further good news for Family Tax Benefit Part A recipients, from 1 July 2013, Part A is being increased significantly — by $300 per annum for families with one child, and $600 for families with two or more children. For families receiving the base rate of Part A, the increase is $100 for families with one child, and $200 for families with two or more children.