2013 Federal Budget Top 10 – Actually, make that 5…..
Last week saw that high point we all get excited about in Australian Federal politics, (yawn………yeah, we know The Biggest Loser had the same time slot, but that’s the kind of sacrifice we make for you here at iGenWealth). Those of us who tuned in were treated to the sheer spectacle of the Federal budget announcement by our beloved prime minister and her band of merry…..henchmen. Usually the Federal cabinet and treasury are about as water tight as a colander, with all the major points being leaked well in advance of the main announcement, and this year was no exception. Some of the cynics here at iGenWealth think that’s probably designed to let the smoke and stench clear ahead of the actual announcement. We decided we’d give you, our readers, a run down on the top 10 issues likely to impact you from the budget announcement. Like we said, we were aiming for the 10 most interesting issues, but in the end we could only get to 5 – they’re more warnings than points of interest.
1. HECS – HELP:
Have you been making your voluntary payments on your HECS-HELP debt to get the discount? Regular readers know that debt reduction is something we are passionate about – but better still, we all love free money from the Government! If you watched the budget speech, you’ll know that the discounts dry up from 1 January 2014, leaving no incentive to repay your debt early – we’re not fans of that but if you have the coin and can slam in one last repayment, do it before 31 December 2013.
2. 1 July 2015 Tax Cuts Deferred:
Remember the Bill Clinton – Monica Lewinsky scandal? The government seems to think, if they recite the message very slowly and clearly, like Bill did, the distastefulness goes away. While they’d previously planned personal income tax cuts from 1 July 2015 these will now be deferred.
3. Medicare Levy:
Yep, that’s going up to by 0.5% from 1 July 2014. The good news is that funds raised will be used to provide fund the government’s new DisabilityCare Australia NDIS scheme.
4. Reforms To Work Related Self Education Deductions:
Not a lot of good news so far is there? From 1 July 2014, those of you who qualify for income tax deductions for work related self education costs will be subject to a new $2000 limit on claims.
5. Baby Bonus Abolished:
The baby bonus, that wonderful source of new Plasma TVs and Trail Bikes in some suburbs, will be abolished from 1 March 2014 and replaced by an increased Family Tax Benefit Part A of $2,000, paid in the year following birth. This will be $1,000 for second or subsequent children. These increased payments will be paid progressively rather than in a plasma sized lump sum so for some, interest free or layby purchases will have to be the fall back plan.
So, that’s our Federal Budget Top 5, and on the basis that we skipped The Biggest Loser to bring you this, we don’t know who is the biggest loser….?
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By Marg Marshall and Dean Johnson
