02 9683 5999On 22 October 2012 Wayne Swan delivered the Mid-Year Economic and Fiscal Outlook for the 2012- 2013 year. There are a number of changes to the 2013 Budget as delivered in May 2012 and they can be summarised as follows:
REDUCTION TO THE BABY BONUS
From 1 July 2013, the baby bonus will be reduced from $5,000 to $3,000 per child for a mother’s second and subsequent children. This will not apply to multiple births.
PRIVATE HEALTH INSURANCE REBATES
From 1 July 2013 the private health insurance rebate will not apply to the lifetime health cover component of private health insurance premium. This will only impact individuals who did not take out private health insurance prior to being 30 years of age. Additionally the amount of rebate paid by the government will be calculated based actual premiums at 1 April 2013 and then increased each year by the lower of CPI increases or actual premium increases.
IN-HOUSE FRINGE BENEFITS
The concessional treatment of in-house fringe benefits gained through a salary sacrifice arrangement will be removed from 22 October 2012. Any existing in-house salary sacrifice arrangements will continue to have access to the concession until 1 April 2014.
PAYG INSTALMENTS
Large companies will be required to make monthly PAYG tax instalments rather than quarterly payments. This will align PAYG tax instalments with GST payments. This change will be phased in as follows;
From 1.1.2014: Companies with turnover of over $1 billion
From 1.1.2015: Companies with turnover of over $100 million
From 1.1 2016: Companies with turnover of over $20 million
SELF MANAGED SUPER FUND (SMSF) LEVY
The collection of the SMSF levy is being brought forward over the 2013-2015 financial years so that the levy is payable in the same financial year that it is levied. The levy amount will also increase to $191 in 2013 and $259 in 2014.
LOST SUPERANNUATION ACCOUNTS
The threshold for lost superannuation amounts to be transferred to the ATO has increased from $200 to $2,000. The time period for an account to be considered lost has also been reduced from 5 years to 12 months.
