Every federal budget has its own dynamics depending on the circumstances of the time, this year’s budget perhaps more so than most.
By Anthony Bell
We find ourselves with what oddly appears to be sudden and unanticipated revenue shortfall, a federal election in September where if the polls are to be believed may well see a change in government, interest rates at 50 year lows, a tapering in the mining boom yet an extremely strong Australian dollar and at least so far only moderate unemployment.
All this with a backdrop of continued international economic uncertainty, albeit with some early indications of a recovery in some markets.
Budget Highlights
We’re pleased to provide the following summary of some of the major changes arising from this year’s Federal Budget.
This report aims to summarise the key implications that might be relevant to you, but it is not exhaustive. We would be happy to assist with any questions you may have regarding how these changes may affect you.
– DisabilityCare Australia funding of $14.3 billion, funded by an increase in the Medicare Levy of 0.5% to 2.0% from 1/7/14.
– Significant increase in funding for Schools.
– $24 billion over the next 5 years for key infrastructure projects (particularly road projects) and public transport.
– Baby bonus scrapped, replaced by benefits at a lower level through Family Tax Benefit Part A ($2,000 for first child and $1,000 for subsequent children).
– Scrapping tax cuts previously promised.
In addition to the budget itself there have been many changes that have been announced in prior budgets that are not yet law but are important to consider. Our report addresses some of the major points.
The Economy—Forecasts at a glance
– $19.4 billion deficit (far higher than the 2012 Budget prediction of a $1.5 billion surplus) and a projected $18.0 billion deficit forecast for 2013-14. $10.9 billion deficit projected for 2014-15 with a return to surplus ($800m) by 2015/16.
– Growth at 2.75% for 2013/14 increasing to 3.0% for 2014-15.
– Unemployment of 5.75% in 2013/14.
– Net debt projected to top out at 11.4% of GDP in 2014/15.
– Tax revenues over the next 4 years down $60 billion on earlier projections
By Anthony Bell, www.bellpartners.com
For more information visit Bell Partner’s Federal Budget 2013/14 Summary
Bell Partners will be hosting a series of Post-Budget Seminars. each session is free and will be held from 6pm – 7.30pm. Venues and dates as follows;
Tuesday May 28 – Park Royal, 30 Phillip Street, Parramatta
Tuesday May 28 – Rydges South Back, 9 Gleneig Street, South Bank
Monday June 3 – Crowne Plaza, Cnr Merewether Street and Wharf Road, Newcastle
Tuesday June 4 – The Grace Hotel, 77 York Street, Sydney
To book in, email bditima@bellpartners.com or call (02) 9249 7661 by Friday May 24th
