Summary of Federal Treasurer Wayne Swan's 2012-13 Budget

  Now that we’ve had more time to digest Wayne Swan’s latest budget, we have prepared a more detailed summary of the major changes than the one we published on Wednesday.

 If you would like to discuss the details and how they impact your personal situation and financial strategies, please do not hesitate to call your adviser on (08) 9380 6333 or send us a message using our Contact Us page.

Superannuation

•   Deferral of higher concessional contributions cap (for those aged 50 and over from 1 July 2012)
•   Reduction of higher concession for contributions of very high income earners
•   Minimum draw down relief for super pension holders remain in place, returning to the normal rates from July 1 2013
•   Superannuation guarantee rate to progressively rise from 9% to 12%
•   Maximum age limit for the superannuation guarantee to be abolished
•   Low income superannuation boost

Social Security

• Mature age worker tax offset (MAWTO) to be phased out from 1 July 2012
•   FTB Part A increase
•   Family Tax Benefit (FTB) A eligibility from January 2013
•   Schoolkids Bonus
•   Aged care reform from 1 July 2014
•   Reduced payment period of Government Payments for people who are temporarily absent from Australia from 1/01/2013
•  Australian residency requirements for the Age Pension from 1 January 2014

Taxation

•   Increased Medicare levy low income thresholds from 1 July 2011
•   Means testing of net medical expenses tax offset (NMETO) from 1 July 2012
•   Accelerated real estate review from 1 July 2012
•   Removal of the capital gains tax discount for non-residents
•   Changes to tax rates for non-residents
•   Company Loss Carry Back
•   Small Business Immediate Write-Off Extension

Previous proposals shelved

• Reduction of the corporate tax rate to 28%. The corporate tax rate will remain at 30%.
• Standard tax deduction of $1,000 for work-related expenses and the cost of managing tax affairs.
• 50% discount for the first $1,000 of interest income.

The following changes announced since last year’s budget will go ahead

• Confirmation of changes to marginal income tax rates & thresholds
• Allowances & supplements to reduce the impact of the introduction of a price on carbon.