What happened to all of those Budget cutbacks?
When the Abbot Government came to power, it was determined to bring the Australian budget back into line. In his first Federal Budget, Joe Hockey announced significant Budget cutbacks that targeted health, education, the environment and small business.
The Federal Budget has proven to be difficult for the Government to deliver thanks to a less malleable Senate. If you're confused about what happened to all of those announced Budget cutbacks then you're not alone. Many of the Government's initiatives are stalled in the Senate awaiting final negotiation.
So where are we?
Here's a quick summary of where everything is up to.
2% debt tax on high income earners from 1 July 2014 (and FBT rate increase from 1 April 2015)
- Superannuation guarantee rephased - now SG will remain at 9.5% until 1 July 2021
- Mining tax repealed
- The company loss carry back rules?abolished
- The instant asset write off threshold of $6,500 for small business entities under the simplified depreciation rules?has reduced back to $1,000 from 1 January 2014
- The accelerated deduction of $5,000 for motor vehicles has been removed from 1 January 2014
- Schoolkids bonus repeal - moved to 31 December 2016 and a means test applied until the repeal date
- Low income superannuation contribution repeal delayed until the 2017/2018 financial year onwards
- Income support bonus repeal delayed until 31 December 2016
- Co-payments for visiting a doctor
- Fuel excise increase
- Retirement age increase to 70
- Changes to pension indexation
- Tightening of access to family tax benefits
- Removal of add-on family tax benefit for additional children
- Cuts to R&D incentive
- 6 month wait for employment benefits
- Deregulation of University fees
The Treasurer has flagged that he will seek savings elsewhere – so watch this space. Of course if you want to know more about how these changes may affect you or your business, please contact us in 02 9957 4033.
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Last updated October 2014. This article is provided for information purposes only and should not be used in place of advice from your accountant. Please contact us on 02 9957 4033 to discuss your specific circumstances.
This article is provided for information purposes only and correct at the time of publication. It should not be used in place of advice from your accountant. Please contact us on 02 9957 4033 to discuss your specific circumstances.