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Slide 1
Budget Update
A Presentation to the
Association of Independent Retirees, Tamworth
21st May 2013
Justin Baiocchi, C...
Slide 2
Level 1, 462 – 464 Peel Street TAMWORTH NSW 2340
AFSL No. 424658
This presentation and the associated discussion i...
Slide 3
Level 1, 462 – 464 Peel Street TAMWORTH NSW 2340
AFSL No. 424658
What will be covered
A general overview of the Bu...
Slide 4
Level 1, 462 – 464 Peel Street TAMWORTH NSW 2340
AFSL No. 424658
2013/14 Budget: a general overview
Not your typic...
Slide 5
Level 1, 462 – 464 Peel Street TAMWORTH NSW 2340
AFSL No. 424658
2013/14 Budget: a general overview
No money for b...
Slide 6
Level 1, 462 – 464 Peel Street TAMWORTH NSW 2340
AFSL No. 424658
2013/14 Budget: a general overview
Instead of the...
Slide 7
Level 1, 462 – 464 Peel Street TAMWORTH NSW 2340
AFSL No. 424658
2013/14 Budget: a general overview
Where the mone...
Slide 8
Level 1, 462 – 464 Peel Street TAMWORTH NSW 2340
AFSL No. 424658
2013/14 Budget: a general overview
Could be viewe...
Slide 9
Level 1, 462 – 464 Peel Street TAMWORTH NSW 2340
AFSL No. 424658
2013/14 Budget: a general overview
A look at Gons...
Slide 10
Level 1, 462 – 464 Peel Street TAMWORTH NSW 2340
AFSL No. 424658
2013/14 Budget: a general overview
A look at NDI...
Slide 11
Level 1, 462 – 464 Peel Street TAMWORTH NSW 2340
AFSL No. 424658
Winners & Losers: The Winners
1. Infrastructure:...
Slide 12
Level 1, 462 – 464 Peel Street TAMWORTH NSW 2340
AFSL No. 424658
Winners & Losers: The Losers
1. Individuals: Per...
Slide 13
Level 1, 462 – 464 Peel Street TAMWORTH NSW 2340
AFSL No. 424658
2013/14 Budget: a general overview
Bad news for ...
Slide 14
Level 1, 462 – 464 Peel Street TAMWORTH NSW 2340
AFSL No. 424658
The impact on you as an individual
Higher
with
f...
Slide 15
Level 1, 462 – 464 Peel Street TAMWORTH NSW 2340
AFSL No. 424658
The impact on you as an individual
Slide 16
Level 1, 462 – 464 Peel Street TAMWORTH NSW 2340
AFSL No. 424658
The impact on you as an individual
Slide 17
Level 1, 462 – 464 Peel Street TAMWORTH NSW 2340
AFSL No. 424658
Impact on Superannuation
Some of these changes w...
Slide 18
Level 1, 462 – 464 Peel Street TAMWORTH NSW 2340
AFSL No. 424658
Impact on Superannuation
Slide 19
Level 1, 462 – 464 Peel Street TAMWORTH NSW 2340
AFSL No. 424658
Impact on Superannuation
Slide 20
Level 1, 462 – 464 Peel Street TAMWORTH NSW 2340
AFSL No. 424658
Downsizing help & Medicare
Slide 21
Level 1, 462 – 464 Peel Street TAMWORTH NSW 2340
AFSL No. 424658
Our Region
The New England electorate received d...
Slide 22
Level 1, 462 – 464 Peel Street TAMWORTH NSW 2340
AFSL No. 424658
The Opposition’s response
Light on detail, but g...
Slide 23
Level 1, 462 – 464 Peel Street TAMWORTH NSW 2340
AFSL No. 424658
Summary
• Probably Wayne Swan’s best budget but ...
Slide 24
Level 1, 462 – 464 Peel Street TAMWORTH NSW 2340
AFSL No. 424658
Thank you
Questions
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The Federal Budget for 2013/14

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In July 2013 Justin recently a Federal Budget update to the Tamworth branch of the Association of Independent Retirees. The presentation sought to clarify some of the major announcements which arose from the budget.

Published in: Business, News & Politics
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Transcript of "The Federal Budget for 2013/14"

  1. 1. Slide 1 Budget Update A Presentation to the Association of Independent Retirees, Tamworth 21st May 2013 Justin Baiocchi, Chartered Financial Analyst Director: Baiocchi Griffin Private Wealth AFSL .424658
  2. 2. Slide 2 Level 1, 462 – 464 Peel Street TAMWORTH NSW 2340 AFSL No. 424658 This presentation and the associated discussion is general in nature and does not take your individual situation into account. You should not act on anything contained herein, or discussed as a consequence of the contents of this document, without receiving personal financial advice from a suitably qualified person such as a financial advisor. General Advice Warning
  3. 3. Slide 3 Level 1, 462 – 464 Peel Street TAMWORTH NSW 2340 AFSL No. 424658 What will be covered A general overview of the Budget and A look at the impact on retirees, people nearing retirement and our local region Please feel free to ask questions during the presentation
  4. 4. Slide 4 Level 1, 462 – 464 Peel Street TAMWORTH NSW 2340 AFSL No. 424658 2013/14 Budget: a general overview Not your typical election year budget… No usual freebies, handouts and bribes ahead of the election…but why?
  5. 5. Slide 5 Level 1, 462 – 464 Peel Street TAMWORTH NSW 2340 AFSL No. 424658 2013/14 Budget: a general overview No money for bribes and handouts…tax revenue for 2013/14 will be $16.6 billion less than expected. Govt. had forecast tax revenue to increase by 10.8%, instead it was 5.3%. Bad luck or bad forecasting?
  6. 6. Slide 6 Level 1, 462 – 464 Peel Street TAMWORTH NSW 2340 AFSL No. 424658 2013/14 Budget: a general overview Instead of the usual pre-election budget, what Swan delivered was… Big Spending - $398.3 billion in government spending and “savings” Big Taxes - $25.5 billion in increased revenue through tax hikes, reduced concessions, higher excise etc. $3 tax increase for every $1 in spending cuts.
  7. 7. Slide 7 Level 1, 462 – 464 Peel Street TAMWORTH NSW 2340 AFSL No. 424658 2013/14 Budget: a general overview Where the money goes (billion) Social security & welfare $138.1 Other purposes $73.6 All other functions $47.1 Health $64.6 Education $29.7 General public services $23.0 Defence $22.0
  8. 8. Slide 8 Level 1, 462 – 464 Peel Street TAMWORTH NSW 2340 AFSL No. 424658 2013/14 Budget: a general overview Could be viewed as a ‘legacy budget’ – NDIS and Gonski
  9. 9. Slide 9 Level 1, 462 – 464 Peel Street TAMWORTH NSW 2340 AFSL No. 424658 2013/14 Budget: a general overview A look at Gonski: where the money will come from. University funding cuts Baby bonus and FTB cuts/changes Business tax increases Job losses in Public Service
  10. 10. Slide 10 Level 1, 462 – 464 Peel Street TAMWORTH NSW 2340 AFSL No. 424658 2013/14 Budget: a general overview A look at NDIS: where the money will come from. Medicare levy increase Assorted cuts to entitlements, health care rebate…etc.
  11. 11. Slide 11 Level 1, 462 – 464 Peel Street TAMWORTH NSW 2340 AFSL No. 424658 Winners & Losers: The Winners 1. Infrastructure: $24 billion over five years to upgrade and expand urban public transport infrastructure in Sydney, Brisbane, Melbourne and Adelaide. 2. Schools/education: $9.8 billion over six years for a new needs-based funding model for schools that increases Commonwealth funding for schools to $104.3 billion from 2014 to 2019. 3. Higher education: $97 million to increase the number of Commonwealth-supported university places and an additional $186 million for research infrastructure. 4. Disability: $14.3 billion in new investment for DisabilityCare Australia, a national disability insurance scheme that will be paid for with an increase in the Medicare levy. 5. Seniors: $127 million for older Australians, including $112.4 million to support those downsizing their homes, $9.9 million to extend broadband support and $4.6 million for a new ageing policy institute. 6. Health: $226 million to fight cancer, including $55.7 million for breast cancer screening, $18.5 million for prostate cancer research and $23.8 million for bone-marrow transplants.
  12. 12. Slide 12 Level 1, 462 – 464 Peel Street TAMWORTH NSW 2340 AFSL No. 424658 Winners & Losers: The Losers 1. Individuals: Personal income tax cuts to begin in July 2015 to help with the carbon tax deferred until carbon price estimates reach $25.40. New estimate for 2015-16 is just $12.10. 2. Environment: Deferral of $370 million of funding for the Australian Renewable Energy Agency, while $225.4 million will be deferred and $32.3 million redirected from the biodiversity fund. $58 million in funding for the Clean Technology Program moved to 2017-18. 3. Resources: Tighter rules on exploration deductions for miners that give the government $1.1 billion over four years. $500 million cut from carbon capture and storage programs. 4. Multinational companies: Tightening of the corporate tax system to remove erosion and loopholes, bringing the government extra revenue of about $4.1 billion and $219.20 million in savings. 5. Foreign aid: The government will defer an increase in the aid budget to 0.5 per cent of the gross national income by one year to 2017-18, saving it $1.9 billion. 6. Families: A reduction in the time allowed to claim family tax benefits and child-care assistance will save the government $562 million over five years, while changes in the eligibility age for another tax benefit will save $76.6 million over four years.
  13. 13. Slide 13 Level 1, 462 – 464 Peel Street TAMWORTH NSW 2340 AFSL No. 424658 2013/14 Budget: a general overview Bad news for future budgets: reliance (again) on overly optimistic forecasts LNG exports from Australia Iron ore price
  14. 14. Slide 14 Level 1, 462 – 464 Peel Street TAMWORTH NSW 2340 AFSL No. 424658 The impact on you as an individual Higher with franking credits
  15. 15. Slide 15 Level 1, 462 – 464 Peel Street TAMWORTH NSW 2340 AFSL No. 424658 The impact on you as an individual
  16. 16. Slide 16 Level 1, 462 – 464 Peel Street TAMWORTH NSW 2340 AFSL No. 424658 The impact on you as an individual
  17. 17. Slide 17 Level 1, 462 – 464 Peel Street TAMWORTH NSW 2340 AFSL No. 424658 Impact on Superannuation Some of these changes were announced last month:
  18. 18. Slide 18 Level 1, 462 – 464 Peel Street TAMWORTH NSW 2340 AFSL No. 424658 Impact on Superannuation
  19. 19. Slide 19 Level 1, 462 – 464 Peel Street TAMWORTH NSW 2340 AFSL No. 424658 Impact on Superannuation
  20. 20. Slide 20 Level 1, 462 – 464 Peel Street TAMWORTH NSW 2340 AFSL No. 424658 Downsizing help & Medicare
  21. 21. Slide 21 Level 1, 462 – 464 Peel Street TAMWORTH NSW 2340 AFSL No. 424658 Our Region The New England electorate received direct funding for a number of projects: - New England Highway Bolivia Hill realignment - $80 million - Liverpool Plains Shire Council water strategy - $400k - Ashford Medical Centre - $280k - NERAM - $250k - Acacia Park NBN rollout - $220k - Inverell Linking Together Centre - $210k - Inverell RSL Museum - $100k - Werris Creek Community Shed - $80k - Gunnedah Shire Band - $20k
  22. 22. Slide 22 Level 1, 462 – 464 Peel Street TAMWORTH NSW 2340 AFSL No. 424658 The Opposition’s response Light on detail, but general key points: - General support for the budget’s tax increases and spending cuts of $43 billion (and no commitment to reverse the tax increases and spending cuts in office) - Delay the scheduled increases in the superannuation contributions guarantee for two years - Will support the NDIS, but not Gonski, unless all the states and territories have committed to it - Promises a comprehensive taxation review (No intention to raise GST, but GST will be included in the review) - Retain the carbon tax compensation package but will abolish the carbon tax
  23. 23. Slide 23 Level 1, 462 – 464 Peel Street TAMWORTH NSW 2340 AFSL No. 424658 Summary • Probably Wayne Swan’s best budget but perhaps too much emphasis on tax increases instead of spending cuts. • Budget surplus forecast to return 2016/17 but this assumes revenue growth and commodity price forecasts which have a high likelihood of not being achieved. • Given the likely outcome of the Federal election, does the budget matter?
  24. 24. Slide 24 Level 1, 462 – 464 Peel Street TAMWORTH NSW 2340 AFSL No. 424658 Thank you Questions ?
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