The 2013 Budget has made many changes that are going to impact you as an individual. We have summarised the major changes in this article.
Benefits to Individuals
Investing into Education schemes
• $9.8 billion over six years in once in a generation school reforms to enhance Australia’s future productivity and wellbeing.
• Additional funding for students across the country to ensure every student in every school gets the help they need, including;
– $1.1b in early childhood education
– $97m on Commonwealth-supported university places
• Total investment in DisabilityCare Australia of $19.3 billion over seven years—Australia’s most fundamental social policy reform since Medicare.
• Raise the Medicare levy by half a percentage point to provide a strong and enduring funding stream for DisabilityCare Australia.
Investing in key health services
• $226 million to improve cancer prevention, detection, treatment and research, and provide better patient care and support.
• $33.8 million further investment into the General Practice Rural Incentive program in 2013 14 to encourage medical practitioners to move to regional and remote communities.
• $691 million over five years in new listings under the Pharmaceutical Benefits Scheme, including for chronic nerve pain, hepatitis C and Parkinson’s disease.
• $127m on senior citizen engagement programs
• $112 million pilot to assist age pensioners to downsize their homes by providing a means test exemption of up to $200,000 for ten years. This is to combat the issue of the ageing population and its sustainability. However, this is applicable to retirees who have owned the family home for 25 years and over.
• Broadband for Seniors program expanded at cost of $9.9 million
• New $4.6 million institute for ageing will investigate challenges and opportunities of ageing population
• $777m funding on Closing the Gap initiatives
• Increasing the Superannuation Guarantee from 9 to 12 per cent from 1 July 2013 to 1 July 2019 to boost the retirement savings of 8.4 million Australians and increase the pool of superannuation savings by more than $500 billion by 2037.
• Contribution cap of $35,000 for over 60s brought forward to July 1
• 3.6m Australians with incomes under $37,000 to pay no tax on their contributions
What has been cut
• The Baby Bonus will be replaced by increases to Family Tax Benefit A from March 2014
• Net medical expenses tax offset (NMETO) will be phased out by the Government. It will only remain available for taxpayers for out of pocket medical expenses relating to disability aids, attendant care or aged care expenses until July 1, 2019.
As a result of this Federal Budget, there are many changes that are set to take place over the next few financial years. For more information about how anything in the 2013 Budget may affect you or for any other tax or accounting related queries please contact the team of experienced Tax Accountants and Tax agents at The Quinn Group. Submit an online enquiry for more information, or call us on 1300 QUINNS (1300 784 667) or +61 2 9223 9166 to book an appointment today.