The Federal Budget Analysis prepared by MLC Technical, a division of GWM Adviser Services (GWMAS) appears below.
Natural disasters over summer, slower economic growth and the lingering impact of the global financial crisis have all hit the 2011/12 budget bottom line.
As a result this budget claims to make nearly $22 billion in savings.
Compared with previous years, the 2011 Federal Budget was relatively mild; with few surprises or major changes.
The Gillard Government, handing down its first Budget, confirmed a range of previously announced tax, super and social security policy changes.
And while the Budget has been received as relatively restrained, some new measures were outlined which may impact how you manage your finances today as well as plan for your retirement.
Note: Unlike previous years, this Budget was delivered by a minority Government that may find it more difficult than usual to get some of these measures through both Houses of Parliament.
summary of the 2011 federal budget
The key announcements include:
- Unlike in previous years there have been no changes made to the personal tax thresholds or rates.
- Those who exceed their concessional contribution caps for the first time by less than $10,000 will be able to avoid paying excess contributions tax.
- People aged 50 and over with less than $500,000 in super will be able to contribute an extra $25,000 in pre-tax dollars each year.
- The 50% pension minimum drawdown relief will be reduced to 25% in 2011/12 and will return to normal levels from 1 July 2013.
- People under 18 will no longer be able to access the low income tax offset to reduce tax payable on unearned income such as dividends, interest and rent.
- Lower income earners will receive a greater proportion of the low income tax offset through their pay packets.
- Fringe benefits tax on salary packaged cars will be simplified to a single rate of 20%.
read the full budget analysis here
The main areas of change in the Federal Budget for 2011/12 are Superannuation, Personal Tax Changes, Other Tax Changes and Social Security Changes. Read more here:
For more information on how any of these changes may impact your personal situation, please contact us on
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The information contained in this Federal Budget Analysis is current as at 11 May 2011 and is prepared by MLC Technical, a division of GWM Adviser Services Limited ABN 96 002 071749, registered office 105-153 Miller Street North Sydney NSW 2060. This company is a Australia Financial Services Licensee and member of the National Australia group of companies. Any advice in this communication has been prepared without taking account of your objectives, financial situation or needs. Because of this you should, before acting on any advice, consider whether it is appropriate to your objectives, financial situation and needs.