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23
May
  • Posted By : Administrative
  • Category: Income
  • Comments: 0

TEMPORARY BUDGET REPAIR LEVY

The Temporary Budget Repair Levy (TBRL) ensures that high income Australians are contributing to repairing Australia's finances as well as share the burden of reducing the country’s debt. The levy is payable by individuals with taxable income above $180,000 and is estimated to raise approximately $3.1 billion over the federal budget. TBRL or the 2% Debt Levy, is now law after the first announcement in the 2014-2015 budget. TBRL is ensuring that those with a greater capacity to pay make a larger contribution to reducing the budget deficit. Around 400,000 taxpayers with taxable income above $180,000 in 2014‐15 financial year will directly incur the TBRL. You must pay TBRL for a financial year if:

 

  • You are an individual;
  • Your taxable income for the corresponding income year exceeds $180,000;
  • The financial year is a TBRL year.

 TBRL announced in the federal budget and it is a three-year additional levy of 2%, payable
for the following financial years:

  • 2014-15;
  • 2015-16;
  • 2016-17
     

TBRL applies to all individuals with a taxable income over $180,000.  The levy will be 2% of
any amount above $180,000. Individuals with taxable income of $180,000 or below will not pay the levy.
Example 1: Someone with a taxable income of $200,000 for the 2015 tax year will pay a levy of $400 ($200,000 – $180,000 x 2%);
Example 2: Someone with a taxable income of $350,000 for the 2015 tax year will pay a levy of $3,400 ($350,000 – $180,000 x 2%).

Minimum income threshold for the TBRL is 180,000 but in some special cases, even if income is less than $180,000 individuals need to pay the levy. For example, individual under 18 years of age has to pay levy if their income is more than $416.


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