2007 Budget
The recent federal budget included a number of changes to taxation, superannuation, social security and family assistance. The summary of the key benefits include:
Personal Taxation changes effective from 1st July 2007
- Increasing the threshold for the 30% tax rate from $25,000 to $30,000
- Increasing the low income tax offset from $600 to $750
- Increasing the income that senior Australians can earn before they start paying tax to $25,867 if single or $43,360 couple combined
- Spouse tax offset increased to $2,100
- Child care benefits will be converted to a direct payment to the family instead of being claimed through their tax assessment
Business Taxation changes effective from 1st July 2007
- Increasing the threshold for the 30% tax rate from $25,000 to $30,000
- Increasing the low income tax offset from $600 to $750
- Increasing the income that senior Australians can earn before they start paying tax to $25,867 if single or $43,360 couple combined
- Spouse tax offset increased to $2,100
- Child care benefits will be converted to a direct payment to the family instead of being claimed through their tax assessment
Superannuation
- A one-off co-contribution bonus equal to the amount of co-contribution entitlement paid for the 2005/06 financial year will be paid to your superannuation fund
- Capital gains tax rollover relief for assets transferred between superannuation funds as the result of a marriage break-up
Social Security
- One-off tax-free bonus of $500 paid to people who are of age pension age, are holders of the Veterans Gold Card or Commonwealth Seniors Health Care Card and who also receive the utilities allowance
- A lump sum payment of $1,000 will be paid to carers who receive the carer payment
- A lump sum payment of $600, for each eligible person in their care, will be paid to carers who receive the carer allowance
- Extending asset test exemption for the proceeds on the sale of your home from 12 to 24 months where there are exceptional circumstances
- Funeral bonds means test exemption threshold will be increased from the 1st January 2008 from $5,000 to $10,000
For an obligation free interview to discuss if a self-managed superannuation fund could suit you, please call Gregory Enright at Enright Superannuation Accountants today on 6686 4744.