Rob Coyte's Blog

The budget delivered last night from Mr Swan was pretty uneventful and will not be remembered beyond lunchtime today.

There wasn’t much in it for superannuation and financial services, as all the big ticket announcements had already been released last week with the Henry Tax Review.

In summary;

1. Gradually increasing the Superannuation Guarantee rate to 12% from the current 9%.
2. $500 super contribution tax rebate for low income earners.

Summary of Key 2010 Budget Announcements

The key proposals announced in the Budget include:

• The maximum co-contribution matching rate and payment amount will remain at 100% and $1,000 respectively with indexation being frozen on the applicable limits.
• Individuals will only need to include 50% of interest income of up to $1,000 from certain investments in their tax return.
• Tax payers will have the option to claim a standard deduction of $500 in 2012/13, increasing to $1,000 in 2013/14.
• The benchmark interest rate for capital protected products will retrospectively be the indicator rate plus 100 basis points.
• Super funds paying terminal medical condition benefits will be eligible to claim a deduction.
• The Commissioner will be able to exercise discretion in relation to excess contributions tax before an assessment is issued.
• If you want a more detailed analysis please refer to Client's Area of our website.

 

Rob Coyte | Wednesday, May 12, 2010
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