In our Budget analysis we summarise the key features announced last night. As in every other year, the Budget will have a positive or a negative impact on different individuals or households in Australia.
Budget at a glance:
1. Rise in budget deficit as tax revenue drops sharply
2. Big ticket commitments for disability, education and infrastructure
3. Superannuation and retirement changes
4. Medicare levy to increase from 1.5% to 2% from 1 July 2014
5. Self-education expense deductions will be capped at $2,000 p/a from 1 July 2014
Superannuation impact at a glance:
1. Confirmation of intent to tax pension funds 15% on any income in excess of $100,000 p/a
2. Concessional contributions for people over 60 to increase from $25,000 to $35,000 p/a from 1 July 2013
3. Concessional contributions for people over 50 to increase from $25,000 to $35,000 p/a from 1 July 2014
4. Concessional contributions will be taxed an additional 15% for individuals with a combined annual income in excess of $300,000.
5. Centrelink’s ‘Deeming rates’ will be applied for pensions which start after 1 July 2015
You can read our full Federal Budget analysis here.