Temporary Budget Repair Levy
As part of the 2014-15 Federal budget the Government introduced a Temporary Budget Repair Levy.
Individual taxpayers with a taxable income of more than $180,000 per year will have additional tax withheld by their employer, starting from 1 July 2014.
The levy is payable at a rate of two per cent of each dollar of a taxpayer’s taxable income over $180,000.
It will apply to both resident and non-resident individuals from 1 July 2014 and applies to the 2014-15, 2015-16 and 2016-17 income years.
In some cases the levy is payable even if you have a taxable income of $180,000 or less. For example, the unearned income of resident individuals under the age of 18 is subject to special rates and will include additional amount for the levy on income greater than $416.
The tax tables have been updated so that employers can withhold the appropriate amount of tax and levy.
The levy will cease to apply from 1 July 2017.