What happened to all of those Budget cutbacks?

By October 16, 2014 Uncategorized No Comments

Budget Cutbacks

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  • Mining tax repealed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 simplified 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?

  • 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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