2013 Federal Budget

Epping, North Rocks and Sydney Hills accountants, W Wen and Co, can show you how if the Federal Budget 2013 affects your personal or business finances
North Rocks and Sydney Hills accountants, W Wen and Co, can show you if Wayne Swan’s Federal Budget 2013 affects your personal or business finances

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.

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