In one of the more highly anticipated Federal Budgets, the Government announced major changes that could warrant a review of your financial plans. Click here to see what the federal budget impact on families will be.
Note: the changes are proposals only and may not be made law.
- A Temporary Budget Repair Levy of 2% will be payable on taxable incomes over $180,000 pa for the next three financial years.
- Changes to HELP debts will increase the amount payable, and payments may need to be made at lower income levels.
- The Dependent Spouse and Mature Age Worker Tax Offsets will be abolished from 1 July 2014.
- People who make non-concessional (after-tax) super contributions from 1 July 2013 that exceed the cap will have the option to withdraw the excess amount plus earnings on the excess.
- The timeframe for increasing the Superannuation Guarantee contribution rate to 12% will be amended.
- The Age Pension age will gradually increase to 70.
- A range of changes to Family Tax Benefit – Part A and B will reduce the number of people who are eligible and, for some, lower the entitlements. The Commonwealth Seniors
- Health Card thresholds will be indexed from 20 September 2014 and the definition of income will be expanded.