We have prepared the attached analysis on the Federal Budget for 2011.
This is the first time in 9 years where we have not seen any personal tax reductions, however in light of inflation expectations this may assist in the frequency of the Reserve Bank of Australia raising Interest Rates over the next 12 months.
There are some major changes for families on tax offsets and benefits as well as some new announcements on deductions for HEC’s repayment and superannuation contributions which were previously announced.
Overall not much in the way of big changes and a fairly conservative budget as expected to ‘get back into surplus by 2012’
Scott