What you gain
Ø The First Home Owners Boost is extended for another three months at the full rate, and three months after that at half the full rate. Contracts entered into before September 30, the boost remains at $14,000 for new homes and $7,000 for established ones and between September 30 and December 31, the boost halves to $3,500 and $7,000 respectively
Ø This extension of scheme will cost government $539 million
Ø Paid parental leave to begin on January 1, 2011 at the cost of $731 million; where the primary carer parents earnings less than $150,000 will be entitled to 18 weeks on the Federal Minimum Wages ($544 per week)
Ø Pension payments to increase $32.49 per week for singles and $10.14 for combined couples; which will cost $3.9 billion per year by 2012-2013, or $14.2 billion over four years
Ø New $600 a year Carer Supplement for all Carer Payment recipients, on top of an increase in their pension
Ø Asylum seekers will be given the right to work while their application are being assessed and for the first time they will receive access to Medicare
Ø The small Business Tax Break for assets ordered between December 2008 and December 2009 will increase to 50%
Ø Rural doctors will receive $130 million for increased incentives of up to $120,000 each to practice in remote areas
What you lose
Ø The cap on tax concessions for superannuation contributions falls from $50,000 per year to $25,000 per year for people aged less than 50 years and $100,000 to $50,000 per year for the over 50s
Ø Super co-contribution for low-income earners will fall temporarily from 150% to 100% saving $1.3 billion, which will be increased to a maximum of $1,250 in 2012-2013
Ø From July 1 next year, the 30% private health insurance rebate will be reduced for singles earning more than $75,000 per year, and families with an income greater than $150,000
Ø Baby bonus will no longer be available to parents claiming paid Parental Leave except in cases of multiple birth, where it is available for the first child only
Ø Qualification for the Age Pension to increase gradually to 67 years by 2023
Ø Payments under Family Tax Benefit A will fall, and income thresholds for Family Tax Benefit B and the Baby Bonus will freeze for three years
Ø For employee share schemes all discounts on shares and options provided under either a qualifying share scheme will be assessed in the income year in which they are acquired. Employee will no longer be able to elect to defer taxation on their discount to a later time & the $1,000 tax exemption will only be available to those employees with a taxable income of less than $60,000 per annum
Ø The foreign employment exemption is to be restricted to:
o An aid or charitable worker employed by a recognised non-government organisation
o A government aid worker; or
o A specified government employee i.e defence and police force personnel deployed overseas
o Other workers will only be eligible to a tax offset for any taxes paid overseas
The Government bank guarantees have helped maintain confidence in domestic financial markets, and enabled lending to continue to provide further support to economic activity. The Government’s economic stimulus strategy has cushioned Australia from the worst effects of the global recession. Without these initiatives, the contraction in the Australian economy in 2009-10 would have been four times larger.
As well as supporting jobs and economic activity, the Government’s fiscal stimulus measures are assisting first home buyers and building physical an social infrastructure. The Government has also supported jobs through its employment assistance measures.