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 Financial Happenings Blog 
Tuesday, May 13 2008

Every year we put together a summary of the major items from the Federal Budget that may impact on the personal finances of our clients.  The Budget presented yesterday by Wayne Swan provided few financial planning surprises.  The really significant development might possibly come from the taxation system review that has been funded in this budget.  One other important point to note from the outset is that there have been no changes made to the Simpler Superannuation system that has been introduced over recent years.

We have posted a summary on our website and encourage anyone with questions regarding the details to get in contact.  The following is a brief summary of the major points.  For more details please click on the link to the full summary - 2008 Personal Finance Budget Summary.

-          Confirmation of the income tax cuts and increases in low income tax offset

-          Increases in the Senior Australian Tax Offset levels of income before tax is payable to $28,867 for singles and $24,680 for each member of a couple in 2008/09 and increasing in future years

-          Increases in the Medicare levy low income threshold to $17,309 and surcharge threshold to $150,000

-          Introduction of the First Home Saver Accounts with a government co-contribution of up to $850 per year and taxed at 15%

-          Confirmation of the Carer's Bonus at $1,000 and Carer's Allowance at $600 for each eligible person in their care

-          Confirmation of Senior's Bonus at $500

-          Confirmation of Senior Concession, Telephone and Utilities Allowances

-          Increases in the level of Child Tax Rebates from 30% to 50% with The maximum out-of-pocket expenses claimable increasing from $4,354 to $7,500 (indexed) per child per year

-          Introduction of the Education Tax Refunds of up to $750 per primary student and $1,500 per secondary students

-          Increase in the baby bonus to $5,000 but no longer eligible for families earning more than $150,000

-          Introduction of means testing to Family Tax Benefit - Part B limiting payments to where the primary earner has an adjusted taxable income of $150,000 a year or less

-          Expanded definitions of income in terms of income tests to include certain superannuation sacrificed contributions, net financial investment losses and net rental property losses and reportable fringe benefits for certain income support payments

-          Dependency Tax Offsets limited to those earning less than $150,000

-          Senior's Health Card Income Test amended to include gross income from superannuation income streams from a taxed source and income which has been salary sacrificed to superannuation

-          Tightening of Fringe Benefit Tax exemptions specifically around laptop computer purchases and meal cards

-          Increase in the luxury car tax from 25% to 33%

Posted by: Scott Keefer AT 11:54 pm   |  Permalink   |  Email
 
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