30 October 2012

Australian Mid Year Budget

With the Australian Government finding it increasingly difficult to return it's budget to surplus in the 2013 financial year, it has announced further savings in the 'Mid-Year Economic & Fiscal Outlook' expected to total $16.4 billion.

The most notable of these is the adjustment to the private health insurance rebate. The rebate will be changed so that it grows only in line with the general inflation rate which is significantly less than the health inflation rate.

The Government also announced cuts to the baby-bonus – reducing payments from $5,000 to $3,000 for second and subsequent children from mid-2013.

Further, in-house fringe benefits provided through salary sacrifice arrangements will no longer be given concessional tax treatment

Big business will also be hit with a monthly tax reporting and payment regime.  From January 2014 this will only apply to companies with turnover of more than $1 billion, however it will also apply from 2015 to companies with $100million turnover or more and from 2016 for companies with more than $20 million turnover.

For further information on the Mid-Year Economic & Fiscal Outlook announcement, click here

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This Newsletter, of necessity, has dealt with matters of a technical nature in general terms only. Clients should contact us for detailed information on any of the items in the Newsletter. No responsibility for loss occasioned to any person acting or refraining from acting in reliance upon any material in this Newsletter can be accepted by any member or employee of the firm.

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