Last night, the Federal Government announced the 2014 Federal Budget!
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.
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.