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The Treasurer, Mr Swan has delivered his promised "no frills" Federal Budget, demonstrating fiscal responsibility in an uncertain global environment.
The promise to return the Budget to a surplus within three years is significantly linked to the successful introduction of the proposed Resource Super Profits Tax and the recovery of the economy.
The Henry Tax Review was released on Sunday 2nd May 2010, and contained recommendations to reform Australia's tax system. The 2010 Federal Budget contains various references to these previously announced Government measures.
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No change was announced to the legislated cuts to the individual tax rates for 2010-11, however the low income tax offset will increase to $1,500. Find out more...
The Government has increased the Medicare low-income thresholds effective from 1 July 2009. Find out more...
The Government has increased the net medical expenses threshold to $2,000 effective from 1 July 2010. Find out more...
The Government will provide individuals with a 50% tax discount on up to $1,000 of interest earned effective from 1 July 2011. Find out more...
From 1 July 2012 the Government will provide individual taxpayers with an optional standard deduction of $500 in lieu of claiming work-related expenses and the cost of managing their tax affairs. Find out more...
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The Government will introduce a Resource Super Profits Tax, a tax on non-renewable resource projects at a rate of 40% on their profits, which will apply from 1 July 2012. Find out more...
The Government will reduce the company tax rate to 28% (from 30%) effective from 1 July 2012. Find out more...
The Government will reduce the company tax rate to 29% (from 30%) effective from 1 July 2013 and to 28% (from 29%) effective from 1 July 2014. Find out more...
Small businesses will be able to immediately write-off assets valued under $5,000 (currently $1,000) and all other assets (except buildings) will be written off in a single depreciation pool at a rate of 30%. Find out more... $337.5 million will be provided over 4 years to the ATO to address issues relating to fraudulent GST refunds, systematic under reporting of GST liabilities, non-lodgement of GST returns and non-payment of GST debts. Find out more... |
The Government announced the superannuation co-contribution will be 100% and the maximum co-contribution payable on an individual’s eligible superannuation contributions is $1,000. Find out more...
The Government will freeze the indexation applied to the income threshold for which the superannuation co-contribution is paid for 2010-11 and 2011-12. Find out more...
The Government announced that it will seek to make a number of minor amendments to improve the operation of the superannuation legislation including excess contributions tax and time limit for deductions. Find out more...
From 1 July 2012, the Government will assist older Australians to make catch-up contributions, by allowing workers aged 50 and over with balances below $500,000, to make up to $50,000 a year in concessional superannuation contributions.
The Government will assist 8.4 million Australians improve their retirement savings by gradually increasing the superannuation guarantee to 12 per cent from 1 July 2013. Find out more...
From 1 July 2012, the Government will contribute up to $500 for workers with incomes up to $37,000. This means those workers will pay no tax on superannuation guarantee contributions in 2012-13. Find out more...
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Source:
2010 Federal Budget Report, Chartered Accountants, http://www.charteredaccountants.com.au/files/documents/FederalBudget.pdf
Budget Overview, Australian Government,
http://www.budget.gov.au/2010-11/content/overview/download/Budget_Overview.pdf
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