
Mr Wayne Swan announced a deficit of $18bn in 2013-14
The Federal Treasurer, Mr Wayne Swan delivered his sixth budget on 14 May 2013. The Treasurer announced a deficit of $18bn in 2013-14. The Government said it expects the deficit to fall to $10.9bn in 2014-15 and return to a small surplus ($800m) by 2015-16.
How the budget may affect you or your family:
- Personal income tax – exempting disaster payments from income tax
The Government has made certain payments associated with natural disasters exempt from income tax.
- Increase in the Medicare levy and Medicare levy low income threshold
The Medicare levy is proposed to be raised by half a percentage point from 1.5 to 2 per cent from 1 July 2014. This is proposed to provide strong and stable funding for Disability Care Australia. The increase will occur in the 2014-15 income tax year.
- Work-related self-education expenses capping
An annual $2,000 cap on these expenses is proposed from 1 July 2014.
- Replacing the Baby Bonus with new family payment arrangements
Family Tax Benefit Part A (FTB Part A) payments will be increased by $2,000.
See your accountant for specifics of how your business is affected
- Monthly PAYG instalments expanded beyond large corporate taxpayers
- Mining rights and information excluded from immediate exploration deduction
- Research and Development (R&D) tax incentive limited to certain turnover
The government proposes to limit access to the R&D tax incentive so that it only applies to companies with annual aggregate Australian turnover of less than $20 billion.