Anyone who earns more than $250,000 will have to pay 30% tax on their super contributions (up from 15%). And others will be able to enjoy a 15% tax rate on money they salary sacrifice up to a limit of $25,000 (down from $30,000).
This will impact those on average incomes of about $210,000.
The start of the new Child Care Subsidy announced in the previous Budget, has been pushed back to July 1, 2018. It would have removed a $7500 rebate cap for families earning less than $185,000 from July 2017. Instead families would have been able to claim up to $10,000 a child.
However, the government will implement the rest of the child care package, which includes extending the Nanny Pilot Program to June 30, 2018 to provide assistance to more families who are having difficulty accessing mainstream child care.
The Government decided to save $2 billion through deregulation by 2020, indicating big cuts to higher education funding. Documents declare the Government has walked away from the 2014-15 Budget’s controversial proposal to deregulate fees. But pending ‘further consultation’, the proposal to cut funding to universities by 20%, along with changes to how student loans are repaid and recovered remain on the table.
Reference: ‘Budget 2016 winners and losers’ 2016, News.com.au, viewed 20 May 2016