Last night, the Federal Government announced the 2014 Federal Budget!
Personal
Challenger has provided their Budget analysis which focuses on the effect on a personal perspective. Please select Challenger Federal Budget Report 2014 to view further information. Or our licensee Godfrey Pembroke has also provided a summary, please select GPL Federal Budget Analysis to read.
Business
KPMG and BDO have provided the following detailed analysis on the Budget, with an emphasis on Business. Please select KPMG budget 2014 and BDO Federal Budget Report for further information.
Some of the key measures are:
- Tightening in eligibility for family tax benefits (FTB), e.g. the income threshold for FTB-B reduced to $100,000 from $150,000 and to end when the youngest child is six.
- Pensions to be indexed to inflation not wages, a pause in eligibility thresholds.
- Further increase in the pension age to 70 by 2035.
- $7 co-payment for GP visits.
- Further 16,500 public sector jobs to go and the merging or elimination of numerous government agencies.
- The resumption of fuel excise indexation from August.
- 2 percentage point increase in the top marginal tax rate which kicks in at $180,000 for three years.
- Reintroduction of the work for the dole scheme.
- Moves to increase the cost of higher education.
- The increase in the Superannuation Guarantee beyond 9.5% delayed till 2018.
- Reduced foreign aid spending.
Below is a video which summarizes the key changes to personal taxation, superannuation and social security.
Please contact us if you have any questions.