Last night
Treasurer Wayne Swan handed down the latest Federal Budget, one that is
projected to take the government from a $44.4 billion deficit to a $1.5 billion
surplus.
The key points
from the budget are these;
Business
- Company tax rate
remains at 30%, with the proposed 1% reduction scrapped
- Companies allowed
to "carry-back" tax losses against profits of the prior year.
This is in relation to losses made in the 2013 year and beyond up to
a maximum of $1m (does not apply to losses made before 1 July 2012)
- Changes to LAFHA
concessions
- $1,000 bonus to
companies for each worker they hire aged over 50 for at least three
months
- Extended GST
compliance program checking under-reporting of GST and non-lodgement of
returns
Personal
- Slight increase in
the low income Medicare Levy threshold
- Scrapping of the
50% discount of tax on the first $1,000 of interest income
- Scrapping of the
standard tax deduction (or "tick and flick") tax return proposal
- Net Medical
Expenses Offset changes for individual and families with incomes over $84k
and $168k respectively, with the threshold increased from $2,000 to $5,000
and the rate is 15% instead of 20%
- Schoolkids bonus
payment replaces the Education Tax Refund, with payment of $820 for high
school students and $410 for primary students if the family qualifies for
Family Tax Benefit Part A
- Medicare Levy
surcharge changes and income testing the eligibility for the private
health insurance rebate
- Increase to Family
Tax Benefit Part A of about $300 per family
- Cutbacks in
parenting payments, shifting it to NewStart (dole) after youngest child
turns 8
- Non-residents no
longer can qualify for the 50% capital gains tax discount
Superannuation
- From 1 July 2012
contributions for taxpayers earning $300k or more will be taxed at 30%
rather than 15%
- Increase in
contributions cap for those over 50 and with a super balance under $500k
has been deferred by 2 years (caps ar $25k if under 50 and $50k if 50 and
over regardless of balance in super)
