We have just emailed out our summary of the 2010 Budget as it relates to  personal finances and financial planning strategies.

This year's budget has provided a number of significant changes impacting on financial planning strategies.  These have been outlined in this summary.  The major changes include:

-          Confirmation of income tax changes from July 1^st 2010 increasing the effective tax free threshold from $15,000 to $16,000 for those earning $30,000 or less, the bottom of the 30% marginal tax rate threshold increasing from $35,000 to $37,000 and the current 38% marginal tax rate being reduced to 37%.

-          A 50% discount commencing July 1^st, 2011 on the tax payable on the first $1,000 of interest income generated by bank, credit union and building society accounts along with income from bonds, debentures and annuity products.

-          A $500 standard deduction for work related expenses starting 2012-13, increasing to $1,000 for 2013-14 to simplify tax returns and lead to tax savings for many individuals.

-          Superannuation guarantee contributions to rise from the current 9% to 12% by July 2019.

-          A $500 superannuation tax rebate, commencing July 1^st, 2012, of the contributions tax for those with incomes of up to $37,000.

-          The superannuation guarantee age limit to rise from 70 to 75 starting July 1^st 2013.

-          A reduction in the company tax rate from 30% to 29% in 2013-14 and 28% in 2014-15.

-          The company tax rate reductions to be brought forward for small businesses with the rate of 28% applicable from 2012-13.

-          Small businesses to be able to immediately write off asset purchases of less than $5,000 compared to the current limit of $1,000.

-          A permanent extension from 1^st July 2012 of the eligibility for those over 50 to receive $50,000 of concessional contributions into super p.a. as long as superannuation balances do not exceed $500,000.

-          The Net Medical Expenses Tax Offset to increase from $1,500 to $2,000