Last night the Federal Governement delivered the Federal Budget for 2012/2013. Determined to provide a surplus result, there was a few significant budget cuts as well as some generous handouts to be received by families and low income earners – Here is a few highlights from the budget –
*The tax free threshold for $6,000 to $18,200 for low income earners. A person earning $50,000 will receive an extra $2,053 in their hand.
* Families received Family Tax Benefit A will benefit in two possible ways – Firstly the education tax refund has been replaced with the “School kids Bonus” A payment of $410 for each child in primary school and $820 for high school students. Secondly an increase of $300 for one child families and $600 a year for two of more children.
* Small business will be able to write off assets under $6,500 and $5,000 from the purchase of a motor vehicle
* A $515 million injection into the public dental waiting lists, in a hope to reduce them – this effects 400,000 Australians.
* The planned 1% reduction in the Company Tax Rate has been cancelled
* Income earners over $300,000 and making additional super contributions will now be taxed at 30% instead of 15%
* The defence budget is being cut by $5.5 billion
* Single unemployed parents will have their parenting support payments removed when their youngest child turns eight (compared with 16 now).
In a tough global economy the reaction to the budget has been mixed. The support for low income earners and families is an important aspect of the budget as well as some tax reforms in the higher end of town. A great time to review your personal budget and make the most of any additional money you will be receiving.