2010 Federal Budget Summary
- Arnold Shields
- May 13, 2010
- 2 min read
Updated: Jun 20
There’s very little in the 2011 Budget to benefit the average business right now. The key announcement is a reduction in the corporate tax rate from 30% to 28%, but it’s delayed:
Small businesses: from 1 July 2012 (29%), then 28% in 2013
Other businesses: not until 2014 and 2015 respectively
The widely discussed Resources Super Profits Tax (RSPT) of 40% will apply from 1 July 2012, targeting non-renewable resource projects.
Other notable changes for small businesses include:
Immediate write-off for assets costing less than $5,000 (from 1 July 2012)
Superannuation guarantee age limit increase from 70 to 75 (from 1 July 2013)
Personal Tax: No Rate Changes, But Some Adjustments
There are no changes to the personal income tax rates legislated in previous years. Here’s how the thresholds look:
Income Range (from 1 July 2010) | Tax Rate |
$0 – $6,000 | 0% |
$6,001 – $37,000 | 15% |
$37,001 – $80,000 | 30% |
$80,001 – $180,000 | 37% |
$180,001 and above | 45% |
Low Income Tax Offset (LITO) Increases
Financial Year | Maximum Offset | Phases Out After Income | Phase-Out Rate |
2010 | $1,350 | $63,750 | 4c per $1 over $30,000 |
2011 | $1,500 | $67,500 | 4c per $1 over $30,000 |
Other Key Budget Measures
From 1 July 2011 onwards:
50% tax discount on up to $1,000 of bank interest earned by individuals
Medical expenses rebate threshold increases from $1,500 to $2,000
From 1 July 2012, standard tax deduction of $500 (increasing to $1,000 in 2013) for work-related expenses and managing tax affairs
Superannuation co-contribution matching rate fixed at 100%, with income thresholds frozen for 2011 and 2012
Superannuation Updates from Henry Review
Superannuation guarantee rate to rise from 9% to 12% by 2019–20, phased in from 1 July 2013
Workers aged 50 and over with super balances under $500,000 can make up to $50,000 concessional contributions from 1 July 2012
$500 government contribution for individuals earning up to $37,000
Final Thoughts
This Budget is more forward-focused than immediate in its benefits. Small businesses will need to wait for corporate tax cuts to kick in, while individuals on lower incomes will see some gradual relief through offsets and super contributions.
If you need help understanding how these changes affect your tax position or business planning, contact Dolman Bateman today.
Disclaimer:
The information provided in this article is general in nature and does not constitute personal financial, legal or tax advice. While every effort has been made to ensure the accuracy of this content at the time of publication, tax laws and regulations may change, and individual circumstances vary. Dolman Bateman accepts no responsibility or liability for any loss or damage incurred as a result of acting on or relying upon any of the information contained herein. You should seek professional advice tailored to your specific situation before making any financial or tax decision.
