The key proposals announced in the Federal Budget include:
  • individuals will only need to include 50% of interest income of up to $1,000 from certain investments in their tax return
  • taxpayers will have the option to claim a standard deduction of $500 in 2012/13, increasing to $1,000 in 2013/14
  • the benchmark interest rate for capital protected products will retrospectively be the indicator rate plus 100 basis points
  • the maximum co-contribution matching rate and payment amount will remain at 100% and $1,000 respectively
  • super funds will be eligible to claim a deduction when paying terminal medical condition benefits
  • the Commissioner will be able to exercise discretion in relation to excess contributions tax before an assessment is issued, and
  • changes will be made to improve the accessibility of Special Disability Trusts.
I will post more details as they follow