Below is a summary of the budget.
Also there is a change happening
regarding the health insurance rebate.Legislation has been passed to income test eligibility for the private health insurance rebate from 1 July 2012. These changes will proportionally lower the private health insurance rebate for those in higher income tiers as well as increase the Medicare levy surcharge for individuals with higher incomes who elect not to purchase private
health insurance. You may want to look into paying premiums up front before the tax year end if this affects you.
The key new announcements include:
• tax may increase on certain employment termination payments • the reduction in the company tax rate isn't going ahead • the increase in the concessional contribution cap for people aged 50 or over with less than $500,000 in super will be postponed until 1 July 2014
(This means that if you are age 50 or over the cap will, under current legislation, fall from $50k to $25k from 01/07/12 this generally includes employer contributions and salary sacrifice. Its a big change and many of my clients are needing to change there contributions accordingly. It also provides a last chance to contribute up to $50k as concessional contributions this tax year.)
• the tax payable on concessional super contributions by people earning $300,000 pa or more will increase from 15% to 30%, and • a 'SchoolKids Bonus' of $820 a year for each child at high school and $410 for every child in primary school will automatically be paid to parents who are eligible for Family Tax Benefit Part A, replacing the Education Tax Refund.
The Government has also confirmed that:
• people earning under $80,000 pa will receive modest tax cuts • the minimum income payments for a superannuation pension/income stream won't increase until 1 July 2013, and • funding will go ahead for the landmark changes to Australia's Aged Care System announced recently.
I hope this is of assistance to you.
None of the above should be taken as financial advice.