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2013 - 2014 Budget Summary


Executive Summary

  • $18Bn deficit
  • Baby Bonus to go
  • Targeting profit shifting
  • Targeting multinationals

Personal Taxation

  • Tax rates:  2015 tax free threshold increase "deferred"
  • Medicare levy increase to 2%
  • Self education expense to be capped of $2000
  • No changes were announced to the LITO from that announced in last year’s Budget.. This will mean low-income earners will have an effective tax-free threshold of $20,542.

Corporate Taxation

  • Targeting multinational profit shifting structures
  • Australia's foreign resident CGT regime. The Government will introduce a 10% non-final withholding tax to the disposal by foreign residents of certain taxable Australian property. From 1 July 2016, purchasers will be required to withhold and remit 10% of the sale proceeds.


  • Confirmation of superannuation concessional contributions caps changes
  • Capping tax-free pension earnings at $100000 per person. Any excess of $100000 under fund in the pension mode will be taxed at 15%. Transitional arrangement will apply for the CGT on CGT assets purchased before 1st Jul 2014.
  • Extra 15% contribution tax for incomes above $300000.

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