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2009 Federal Budget Update |
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In the face of global economic uncertainty, the Government’s 2008-2009 Budget has pinned its hopes of economic recovery on increased infrastructure spending to help support jobs. Treasurer Wayne Swan’s second Budget has maintained his promise to increase the age pension and to proceed with individual tax cuts. The Budget includes a number of changes to taxation, superannuation and government pension benefits. These changes include reducing superannuation salary sacrifice concessions from 1 July 2009, progressively increasing the age pension age to 67, reducing the Private Health Insurance Rebate, extending the First Home Owners Boost, introducing paid parental leave and offering tax breaks for small business.
Don’t think you have heard the last of the superannuation changes. The Government today launched the
Australia
’s Future Tax System Report on the retirement income system, which is where they credit the idea of cutting the concessional contribution caps. There is a final report due in December this year which promises to consider a range of issues not yet dealt with.
This Ulton Budget Update is a summary of the relevant Budget announcements and how they may affect you and your wealth building.
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SUPERANNUATION
Reducing the Concessional Contribution caps
The concessional contributions cap is proposed to halve to:
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$25,000 per annum for those under age 50; and
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$50,000 per annum for those over 50 for the 2009-2010,
2010-2011 and 2011-2012 years
This comes into effect from 01/07/09, limiting the ability to salary sacrifice into super for higher income earners.
‘Transition to Retirement’ pensions remain, however the strategy will be somewhat limited with the transitional concessional cap of $100,000 for those aged 50 or older also being halved from 2009-2010 to $50,000 and will cut out from 1 July 2012 as originally planned. READ MORE
TAX
Announced Tax Cuts from 1 July 2009
In accordance with the tax cuts announced in last year's Budget, there are new personal income tax thresholds for the 2009-2010 year. READ MORE
FIRST HOME OWNERS
Extension of the First Home Onwers Boost
For eligible first home buyers entering into contracts READ MORE
PENSIONERS - Secure and Sustainable Pensions
There are a number of changes relating to Age, Wife, Disability Support, Carer's & Veteran Pensions READ MORE
Contact Ulton Partner, Kylie McIntosh on (07) 4154 0425 or email kmcintosh@ulton.net for further information.
INVESTMENT ALLOWANCE FOR BUSINESS
The Government will expand the small business and general business tax break announced in February. Small businesses will now be entitled to a bonus deduction of 50% where they acquire an eligible asset between 13 December 2008 and 31 December 2009 and install it ready for use by 31 December 2010. The previously announced 30% and 10% bonuses will continue to apply for all other businesses. A small business is generally a business that has a turnover of less than $2 million per year.
The additional small business tax break will allow small businesses with turnover of less than $2 million to claim a bonus tax deduction of 50% of the cost of eligible assets costing more than $1,000. Eligible assets include tangible depreciating assets, such as computers and vehicles, and new expenditure on existing assets used in carrying on a business for which a deduction is available under the capital allowance provisions of the Income Tax Assessment Act 1997.
Under the previous changes, small businesses were eligible for a 30% bonus deduction where it acquires an eligible new asset between 13 December 2008 and 30 June 2009 and the asset is ready for use by 30 June 2010. The bonus deduction is reduced to 10% where the small business acquires the eligible asset between 1 July 2009 and 31 December 2009 and the asset is ready for use by 31 December 2010.
Contact Ulton Partner, Jamie Rach on (07) 4154 0442 or email jrach@ulton.net for further information.
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Licencing
All financial planning services are provided by authorised representatives of
Professional Investment Services Pty Ltd
AFSL NO: 234951
ABN: 11 074 608 558 | |
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Ulton Insight
13 May 2009 |
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Pensioners
Investment Allowance for Business
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BUDGET UNLOCKED
Self Managed Superannuation Strategies for Surviving the 2009 Federal Budget
Special Briefings:
BUNDABERG
Tuesday 26 May
5.30pm for 6.00pm
R.S.L.
Gallipoli Room
17 Quay Street
GLADSTONE
Wednesday 27 May
5.30pm for 6.00pm
Grand Hotel
Sandpiper Room
79 Goondoon Street
FRASER COAST
Thursday 28 May
5.30pm for 6.00pm
Peppers Pier Resort
Fraser Room
The Esplanade, Urangan
CONCLUSION
7.15pm
Please stay for refreshments
RSVP: Wednesday 20 May
Deb Ward
T (07) 4154 0411
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