05 Feb 2015

What happened to all of those planned Budget cuts?

If you’re confused about what happened to all of those announced Budget cutbacks then you’re not alone.  Many of the Government’s initiatives are stalled in the Senate awaiting final negotiation.  Here’s a quick summary of where everything is up to:

What’s changed?

2% debt tax on high income earners from 1 July 2014 (and FBT rate increase from 1 April 2015)

Superannuation guarantee rephased – now SG will remain at 9.5% until 1 July 2021

Mining tax repealed

The company loss carry back rules abolished

The instant asset write off threshold of $6,500 for small business entities under the simplifie

depreciation rules has reduced back to $1,000 from 1 January 2014

The accelerated deduction of $5,000 for motor vehicles has been removed from 1 January 2014

Schoolkids bonus repeal – moved to 31 December 2016 and a means test applied until the repeal date

Low income superannuation contribution repeal delayed until the 2017/2018 financial year onwards

Income support bonus repeal delayed until 31 December 2016

What’s still up for debate?

  • Co-payments for visiting a doctor
  • Fuel excise increase
  • Retirement age increase to 70
  • Changes to pension indexation
  • Tightening of access to family tax benefits
  • Removal of add-on family tax benefit for additional children
  • Cuts to R&D incentive
  • 6 month wait for employment benefits
  • Deregulation of University fees
  • The Treasurer has flagged that he will seek savings elsewhere – so watch this space.

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