The “2011 AUSTRALIAN Budget” is here and as predicted by swan they would be some cuts , the budget was quite boring with just some nip and tucks in a few places.It was nothing extra ordinary , in fact some people might also say it was a bit over cautious , not to upset too many people.
Commodities boom to being back Budget 2011 in surplus in 2 years time
While the australian budget focused on providing jobs , it also made it tougher for the dole bludgers to get more out of the system. It did not have much changes in relation to property investment and real estate in the 2011 budget , for which many might have had a sigh of relief.
So to make it simple lets just focus on what is going up in the budget and what is going down in this 2011 Budget
Australia Budget 2011 -What is going up? (Less benefits or costs increase)
- Means test for high income earners for family payments (Less benefits)
- Low income tax offset taken away to discourage people doing investment in the name of the children to take adavantage of the Investment offset for teens
- Entrepreneurs’ tax offset is gone
- Cuts to public service funding ( efficiency dividends)
- Families: Family Tax Benefit will be cut off when children turn 21 instead of 24, saving $29.2 million over four years
Australia Budget 2011 -What is going Down? (More benefits received & Costs decrease)
- More apprenticeships (jobs & training) available to the Australian people ( by creation of the $558 million National workforce development fund)
- $5000 tax break for small business vehicles.
- $2.2 bn given for mental health sector services over five years
- Raise tax free threshold to $16,000 for low income earners
- Lower tax on bank savings with 50% discount on upto $1000 interest income
- Tax returns simplified with a $500 standard deduction for work-related expenses, without need of receipts, rising to $1000 from 2013.
- Applicants for disability support pension will first go on the dole and then have to prove that they cannot get work.
- Company tax falls to 28 per cent for small business from 2012-2013.
Budget predictions 2011
Considering that Australia has been hit with the “yasi cyclones” in the eastern states majorly affecting the booming mining industry and agricultural industry and also the “fires and floods in western Australia” , this budget back to surplus in 2years is a good suprise.
- Economy expected to grow by 3.25 % in 2010- 11
- Unemployment rate set to fall to 4.75 % in 2011-12
The full Australian budget paper is available at http://www.budget.gov.au/ and get the “WA State Budget over here”
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