Sign in to follow this  
Guest Chelseadownunder

Budget and other points of interest

    Recommended Posts

    Guest Chelseadownunder

    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.

     

    Summary

     

    The key new announcements include:

    [TABLE=width: 100%]

    [TR]

    [TD]01415915.gif

    [/TD]

    [TD] [/TD]

    [/TR]

    [TR]

    [TD] •[/TD]

    [TD]tax may increase on certain employment termination payments

    [/TD]

    [/TR]

    [TR]

    [TD] •[/TD]

    [TD]the reduction in the company tax rate isn't going ahead[/TD]

    [/TR]

    [TR]

    [TD] •[/TD]

    [TD]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.)

    [/TD]

    [/TR]

    [TR]

    [TD] •[/TD]

    [TD]the tax payable on concessional super contributions by people earning $300,000 pa or more will increase from 15% to 30%, and

    [/TD]

    [/TR]

    [TR]

    [TD] •[/TD]

    [TD]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.

    [/TD]

    [/TR]

    [/TABLE]

     

    The Government has also confirmed that:

    [TABLE=width: 100%]

    [TR]

    [TD]01415915.gif

    [/TD]

    [TD] [/TD]

    [/TR]

    [TR]

    [TD] •[/TD]

    [TD]people earning under $80,000 pa will receive modest tax cuts

    [/TD]

    [/TR]

    [TR]

    [TD] •[/TD]

    [TD]the minimum income payments for a superannuation pension/income stream won't increase until 1 July 2013, and[/TD]

    [/TR]

    [TR]

    [TD] •[/TD]

    [TD]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.[/TD]

    [/TR]

    [/TABLE]

    Share this post


    Link to post
    Share on other sites
    Guest Sachertorte

    Hi Steven,

     

    Would you like to exemplify what a concessional contribution is?

     

    Thanks in advance

    Share this post


    Link to post
    Share on other sites
    Guest Chelseadownunder

    concessional contributions are Super contributions which include

    Employer Contribution i.e. your 9% and Include any salary sacrifice to Super you may be doing in addition to this.

    Also Personal Contributions where the individual is claiming a tax deduction

    Share this post


    Link to post
    Share on other sites

    Create an account or sign in to comment

    You need to be a member in order to leave a comment

    Create an account

    Sign up for a new account in our community. It's easy!

    Register a new account

    Sign in

    Already have an account? Sign in here.

    Sign In Now

    Sign in to follow this