Colonial FirstTech 2013 Budget Briefing

Introduction

Federal Treasurer Wayne Swan has handed down his sixth Budget, which confirms a range of recently announced proposed changes to superannuation, income tax and the Medicare Levy. It also announces a range of proposed changes to the social security and tax systems.

This FirstTech briefing discusses the impact to clients and recommended client strategies of the proposed changes announced in the Budget, particularly focusing on the following six key announcements:

• confirming proposed changes to superannuation announced on 5 April 2013
• increasing the Medicare levy by 0.5% from 1 July 2014
• not proceeding with tax cuts that were legislated to apply from 1 July 2015
• phasing out the Net medical Expenses Tax Offset
• limiting tax deductions for self-education expenses
• trialing means test concessions for pensioners looking to downsize their homes.

It is important to note that all announcements mentioned are proposed only at this stage, and may change prior to being legislated.

Please click here to read the Colonial FirstTech Budget briefing