The Federal Government recently handed down the Annual Budget.  The key initiatives include:

• A temporary levy of 2% will be payable on taxable incomes over $180,000 for the next three financial years.
• Tightening the eligibility for Family Tax benefits which will reduce the number of people who are eligible, and for some, lower the entitlements.
• Maintaining employer superannuation contributions at 9.5% for three years from 1 July 2014.
• Further increasing the Age Pension age to 70 by 1 July 2015.
• Indexing pensions to CPI rather than wages from 1 September 2017.
• Resetting deeming thresholds to $30,000 for singles and $40,000 for couples from 20 September 2017.
• Freezing Income and Asset Test thresholds for pensions from 1 July 2017.
• Including the deemed amount of untaxed superannuation income in the Income Test for the Commonwealth Seniors Health Card for new recipients from 1 January 2015.
• Allowing individuals to withdraw superannuation contributions in excess of the non-concessional contributions cap from 1 July 2014.
• The income thresholds determining the Private Health Insurance Rebate and Medicare Levy Surcharge will not be indexed for three years starting on 1 July 2015.
• The Dependent Spouse and Mature Age Worker Tax Offsets will be abolished from 1 July 2014.

Should you wish to discuss how any of these announcements may affect your financial positions please feel free to contact our office.