The Federal Treasurer Joe Hockey handed down the 2015/16 Federal Budget last week.
Many of the proposed changes will affect young families, small business, retirees and women.
To understand the key budget measures, read our reference guide below.
Access to a part pension will be restricted by changes to the Assets Test. For higher asset couples , the Asset Test Threshold will drop from $1,151,500 for home-owning couples to $823,00, and from $775,500 for home-owning singles to $547,000. This will effect around 91,000 retirees who will need to become fully self-funded.
At the lower end of the Pension Assets Test Thresholds for the full Age Pension the figure rises from $202,000 to $250,000 for single home owners and from $286,500 to $375,000 for couples who own their own home. Therefore you can have assets totalling up to these higher amounts and qualify for the full aged pension.
Changes for families particularly concern child-care. For child-care, the Government will directly subsidise the child care providers and result in families who earn less that $65,000 per annum will receive 85% of childcare fees back, while those earning $170,000 or more will receive 50%.
There will also no longer be a cap on the subsidy for those earning less that $185,000. These changes however do not take affect until 2017 and there are two budgets and an election before then.
For Small Business:
Incorporated businesses, with an aggregated annual turnover under $2 million, are set to receive a 1.5 per cent tax cut from July 1 as a result of the company tax rate proposing to fall form 30% to 28.5%.
Small unincorporated businesses, with an aggregated annual turnover under $2 million (such as sole traders and partnerships), will receive a 5 per cent discount on the tax payable on their business income, up to the value of $1,000 per person per year.
Accelerated depreciation changes will result in an immediate deduction for asset purchases for small business establishment costs. Small businesses will get an immediate tax deduction for any individual assets they buy costing less than $20,000.
This $20,000 limit will apply to each individual item and can be applied to an unlimited number of items.
Colonial First State has put together a great summary which can be downloaded here.
For a fuller personal assessment on how the proposed Budget measure apply to you please make an appointment and come have a chat.