Budget Brief: Other Announcements
Some of the other measures announced in the federal budget include:
- The re-introduction of biannual indexation (to CPI) of excise for fuels starting from 1 August 2014 with the funds being specifically linked to the infrastructure spending.
The diesel fuel rebate is unchanged, meaning it will continue to apply to excise, including the excise increase.
- Universities will be able to set their own fees from January 2016 which will lead to fluctuations on fee levels for current and future students. This could lead to higher costs for education in the future especially when combined with an increase in interest rates for HELP debts.
- Whilst having no immediate back pocket impact, a reduction in funding to the various States in respect of schools and hospitals will no doubt see the States request an increase in the level of government support. This support is likely to be funded by an increase in GST, however, any change in the GST is unlikely to occur before the next federal election.
- Eligibility for the Age Pension to rise to 70 by 2035 rising in 6 monthly thresholds every 2 years from 1 July 2025. People born before 1 July 1958 will not be effected by this measure.
- Untaxed superannuation income will be included in determining the eligibility for the Commonwealth Seniors Health Card from 1 January 2015.
- The deeming thresholds under the “income test” for pensions will be reset from $46,600 to $30,000 for single pensioners and from $77,400 to $50,000 for pensioner couples from 1 September 2017.
- Significant tightening on the Family Tax Benefits A and B reducing the income thresholds and limiting FTB B to families with a child under 6.
Whilst not part of the Federal Budget last night it is worth remembering that States Budgets are in full swing with the following budget announcements having been made:
From 1 July 2014:
- payroll tax rate will be reduced from 4.9% to 4.85%;
- the duty payable on life insurance in Victoria will be abolished; and
- the motor vehicle duty rate will be increased by $0.40 per $200 of the dutiable value of a vehicle.
From 1 July 2015, a new Metropolitan Planning Levy will be introduced.
The amendments listed above commence on the day after the Bill receives Royal Assent.
A 10% increase in the land tax rates applying from the 2014-15 land tax assessment year.
The Government also reaffirmed the commitment announced in the 2013-14 State Budget to increase the annual tax free threshold for payroll tax from $750,000 to $800,000 from 1 July 2014 and $850,000 from 1 July 2016.
NEW SOUTH WALES
The NSW State Budget is handed down on 17 June 2014.
If you have any questions in relation to the budget and how the change may impact you or your business please contact your relevant ESV engagement partner on 9283 1666.