Last Updated:
Thursday, 03. July 2008

Australian Budget

 

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The 2008 Australian Budget

The 2008/09 Australian Budget provides for a projected Budget surplus for next year of a record $21.7 billion, in the ALP's first Budget for 13 years.

Migration:

  • An extra 31,000 skilled migrant places a year will added to the Migration program to assist employers struggling with labour shortages.
  • Of next years total migration program's 190,300 places, permanent skilled migration will be 133,500. The family stream will be increased to 56,500.

Tax:

  • From 1 July 2008, the main Income Tax threshold of 40 per cent will increase to $80,000 and the 45 per cent threshold will increase to $180,000. (As declared in the 2007 Budget)  The 45% rate will reduce to 40% by 2013/14.
  • Medicare levy surcharge threshold to be increased from $50,000 to $100,000 for singles, and from $100,000 to $150,000 for couples.
  • Increasing the low income tax offset from $750 to $1,200.

Benefits:

  • The Baby Bonus is to be means tested, meaning that no family with a household income exceeding $75,000 for the six months after date of birth will be eligible for this bonus.  From January 2009 it will also be paid fortnightly instead of as a One Off lump sum.
  • Family Tax Benefit (FTB) Part B will be limited to families where the primary earner has an adjusted taxable income of $150,000 or less.
  • Child Care Benefit will now be paid only to those earning under $110,000, although it increases from 30% to 50%.

Education:

  • 50 per cent tax refund on education expenses for school students (maximum $375 per Primary child and $750 per secondary child, per year).
  • The Federal Government will increase funding for private schools from $3.1 million to $3.5 million over a five-year period.

     

Employment:

  • Plans to cut Wages growth down to 4% from the current 4.25% pa growth
  • Employment growth to slow from 2.5% to 1.25%

 


The 2007 Australian Budget

The 2007/08 Australian Budget provides for an underlying cash surplus of $10.6 billion, the Liberal Government's tenth surplus.

Personal income tax reform

All taxpayers will benefit from a further $31.5 billion in tax cuts over the next four years.
From 1 July 2007, the low income tax offset will increase to $750 per year and the 30 per cent threshold will rise from $25,000 to $30,000.
From 1 July 2008, the 40 per cent threshold will increase to $80,000 and the 45 per cent threshold will increase to $180,000.


Realising Our Potential

$5 billion will be invested in a new Higher Education Endowment Fund to provide a perpetual source of funding for university capital works and research facilities.
$3.5 billion of additional funding for education and training.


Other key initiatives

From 1 July 2007, rates of Child Care Benefit will increase by 10 per cent on top of indexation. The Child Care Tax Rebate will be available as a direct payment shortly after the end of the year.
One off doubling of superannuation co-contribution for eligible contributions made in 2005/06, to improve superannuation savings for low income earners by $1.1 billion.
$500 one off bonus payment, to ensure older Australians share in the economic growth they helped create.

http://www.ato.gov.au/budget/index.htm

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