Budget 2016: How it will impact your wallet
finder.com.au's politics-free analysis of the Budget changes that will affect your income and your future.
At 07:30pm on 3 May 2016, the 2016-2017 Federal Budget was officially unveiled. Here at finder.com.au, we're not buying into the stale political arguments from either side around the Budget. We want to know about the measures that will make an immediate difference to your wallet, now and in the future. Whether or not the Budget achieves its stated goals of an eventual surplus, those changes will impact you.
Here's what we know so far:
- The incomes at which higher levels of tax apply have been tweaked. The current $80,000 threshold (where the marginal rate rises from 32.5 cents to 37 cents) has been raised to $87,000.
- Superannuation concessions for high-income earners are being tightened up. Here's what will change.
- It was widely assumed that university fees would be increased, but no policy in this area was announced.
- Increases in excise on cigarettes will continue at 12.5% a year, making it likely a single packet will cost $40 by 2020. There'll also be a limit of 25 cigarettes for duty-free buyers.
One practical thing to remember: because it's universally assumed that a double-dissolution election will be called this week for 2 July, any proposed changes won't have a chance to be passed by Parliament. If there's a change of government, many of the Budget proposals will be off the table. Even if the current Coalition government remains, changes may have to be negotiated through the Senate. Changes could be made retrospective but it's more likely they'll apply in the 2017-2018 financial year and beyond.