The treasurer Mr Joe Hockey has delivered his first federal budget to the Australian people last night.
From a taxation point of view, the Budget was relatively light on with relatively few tax measures announced. It is important to note that the Treasurer has indicated that the Government's proposed Tax Reform White Paper is meant to address a wide range of potential reforms. We will continue to monitor any Government proposals and keep you informed.
There was a significant range of welfare benefit changes and other projected savings aimed at deficit reduction. In addition to the savings measures, there was some planned infrastructure spending and Medicare reforms.
Of course all of the announced budget measures are subject to the political process. The reforms will need to pass through the senate to be enacted and we will have to wait and see what impact this will have to last nights announced budget. There are a number of previously announced budget proposals yet to be enacted - you will find a good summary of these within the attached summary.
The attached overview provides detail on the main points announced and should you have any questions please do not hesitate to contact our office.
Speak to you soon.
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2% levy will apply for incomes over $180,000 from 1 July 2014.
Individuals allowed the option of withdrawing excess non-concessional contributions from 1 July 2013 and taxed at their marginal rate.
The SG rate will increase on 1 July 2014 as originally proposed.
People born before 1 July 1958 will not be affected by this measure.