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Federal Budget – what it means for you

Budget 2013/14 – what does it mean for you?

Key points from the Budget – with commentary provided by CPA Australia

Education, the knowledge economy and the Asian Century

  • $9.8 billion from 2014-15 will be welcome news for our schools and school teachers but Asian literacy barely rates anything but a cursory mention in this Budget.
  • The $97 million earmarked for additional university places for nursing, teaching and Asian languages represents only around 1,650 places per year. It does virtually nothing to meet what is required if we are to truly seize the opportunity that the Asian Century presents.

Infrastructure and productivity

  • The proposed investment in roads, rail and cities is very encouraging.
  • But we note that there are no funds for the proposed infrastructure investment in 2013-14, and the remainder of the funds are contingent on:
                oState government investment, and even
                oPrivate sector investment
  • As a nation with large distances between cities and a large distance from major markets, we simply must invest in creating world class infrastructure in order to move goods and people around as quickly and as cheaply as possible.

Capping of self-education deduction to $2,000 per annum

  • If our professionals and tradespeople are to be of the highest standard, they need to not only have a strong underpinning education but commit to keeping up to date through lifelong learning, then capping of self-education expense claims runs counter to this and reduces the ability of Australians to compete in global markets
  • It will also be a hit to universities, TAFES amongst others
  • We do not believe the implications have been fully thought through.

Australian businesses and competitiveness

  • If Australian businesses were expecting a tax cut, they were deluded – and they will be disappointed
  • Instead, large businesses will face a series of new integrity measures estimated to raise $4 billion
  • While we are strong supporters of the integrity of the tax system, this may impact business investment and further reduce the international competitiveness of our corporate tax system.

National savings and superannuation

  • The Government has confirmed, unsurprisingly, its intention to proceed with the recently announced super changes
  • But there is a bigger task to be done – an independent national review of savings and we are disappointed this has not been addressed as part of the budget.
To discuss the implications of these (or other) budget changes on your personal or business situation, contact your advisor at The Practice on (03) 8888 4000.