Budget 2015: Who is in the firing line?
If the rumours have any truth to them, higher income earners, those with large asset bases and anyone earning income from overseas are about to be in the Budget firing line.
High income earner? Have a large asset base? Earn any foreign income? If so, then the rumours surrounding the 2015/16 Federal Budget means you're likely to find yourself in the firing line come May 12.
The Australian economy is coming down from its resources-driven sugar high. Reserve Bank Governor Glenn Stevens said recently that "… the government has little choice but to accept the slower path of deficit reduction over the near term."
While there is a clear determination by the ATO to target big multinationals over perceived profit shifting, the declining iron ore price has blown a $30bn tax receipts hole in the budget over 4 years.
So, the question is: Where can the Government get savings into the Budget that will make the impact it needs but even more importantly, keep voters and business onside.
Prime Minister Tony Abbott recently said, "There will be tough decisions in this year's budget as there must be, but there will also be good news." This budget will be about moving thresholds and imposing restrictions on the existing system.
This Federal Budget is not about what the Government believes is necessary but what they can get through the Senate. Large structural reforms to tighten welfare, education and health have failed in the Senate in their current form.
Based on what has been announced so far, how is the budget shaping up for you?
Budget 2015: What's in it for families and individuals?
Budget 2015: What's in it for business?
Budget 2015: Contributing to super - what you need to know
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.