Join ABN
Or Call 1300 856 710

Latest News

All the latest news and events from the Bookkeeping Industry

Announced - Deficit Tax for the Next Four Years

ABN Latest News

In the first of the official “bad news” pre budget announcements, Tony Abbott has announced that the May budget will include a deficit tax which will operate in a similar vein to the Medicare Surcharge.

It seems likely that the following bands will be used in applying the tax:

Taxable Income                                         Percentage Deficit Tax

$Nil to $79,999                                           Nil%

$80,000 to $179,999                                   1%

$180,000 and above                                    2%

This means that taxpayers on $80,000 will be hit with $800 in extra tax, while someone earning $180,000 will fork out an extra $3,600 in tax. It certainly has been targeted towards the higher level earners.

The commitment at this stage from the government is that this tax will only be around while the budget remains in deficit.

We expect to have a few more “bad news” announcements in the coming days to ease the general public into what is increasingly looking like a fairly stringent budget. 

The budget will be handed down on May 13.

Category
ABN
Published
29 Apr 2014
NEXT ABN's Getting Technical
PREV Protect Your Reputation - Manage Your Credit Rating
Back to news listing

Click here to subscribe