2010 – 2011 Federal Budget

summary

There were not too many surprises in this years Federal Budget. As always, there were a couple of sweeteners such as the 50% discount for interest income and a standard tax deduction for work related expenses, but many of the measures announced were confirmation of the Governments previously announced changes in response to the recent Henry review.

Announcements regarding changes to personal taxation, superannuation and social security included:

• 50% discount for interest income. Individuals will only need to include 50% of interest income of up to $1,000 from certain investments in their tax return.
• Standard Tax Deduction for Work-related expenses. Taxpayers will have the option to claim a standard deduction of $500 in 2012/13, increasing to $1,000 in 2013/14.
• Permanent reduction to the superannuation co-contribution matching rate. The maximum co-contribution matching rate and payment amount will remain at 100% and $1,000 respectively.
• Personal Tax Rate reductions. Previously announced changes to personal tax rates and enhancement to Low Income Tax Offset were confirmed.

If you would like to know more about changes announced in the Federal Budget please contact Morse Group or alternatively more information can be obtained from the links below.
www.cpaaustralia.com.au
fpa@fpa.asn.au
www.icaa.com.au

Morse Financial Services Pty Ltd, AFS Licence No. 240689, ABN 61 003 185 742

This information is based on our understanding of the current taxation and superannuation laws.  It is current as at 14 May 2010.

The information  is of general nature only and is not intended as a personal advice.  It does not take into account your particular investment objectives, financial situation and needs.  Before making a financial decision you should assess whether the advice is appropriate to your individual investment objectives, financial situation and particular needs.  We recommend you consult a professional financial adviser who will assist you.