Recently enacted Australian legislation effectively raises the tax burden for individuals with annual taxable incomes exceeding A$180,000, by imposing a temporary levy. This temporary levy is to apply from July 1, 2014 to June 30, 2017, and will also be reflected in the Fringe Benefits Tax rate.
Australia’s so-called “temporary budget repair levy” of 2 percent, raising the tax burden for certain individuals, has been enacted. On 25 June 2014, the package of 15 Temporary Budget Repair Levy bills received Royal Assent. The additional income tax rate on annual taxable income exceeding A$180,000, will apply from 1 July 2014 to 30 June 2017.
As we noted in Flash International Executive Alert 2014-057 (30 May 2014), the temporary budget repair levy will impact the rate of tax paid by individuals as well as the Fringe Benefits Tax rates over a number of years. These changes are likely to raise tax burdens for certain employees (including those on international assignment subject to Australian taxation) and their employers, and will have an impact on payroll withholdings, tax equalizations, and international assignment budgeting and cost projections.
As noted above, the temporary budget repair levy will apply from 1 July 2014 to 30 June 2017, and, therefore, is payable with respect to the 2014-15 financial year and the following two financial years.
For further information or assistance, please contact your local IES professional, or one of the following IES professionals with the KPMG International member firm in Australia:
+61 2 9335 8655
+61 3 9288 5279
+61 8 8236 3234
+ 61 8 9278 2053
The information contained in this newsletter was submitted by the KPMG International member firm in Australia.
<p>© 2018 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.</p> <p>KPMG International Cooperative (“KPMG International”) is a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm.</p>
Flash Alert is an Global Mobility Services publication of KPMG LLPs Washington National Tax practice. The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.