On 14 May 2013, the Treasurer handed down the 2013-14 Federal Budget, his 6th, and arguably most difficult, Budget. Significant revenue shortfalls over those budgeted for (despite growth in overall revenue collections year-on-year), and Government spending commitments such as the National Disability Insurance Scheme and the Gonski school reforms, placed considerable pressure on framing this year’s Budget. A surplus as predicted in last year’s Budget did not eventuate, although the Treasurer said the Government was “charting a sensible pathway to surplus over the forward estimates”. The Treasurer announced a deficit of id=”mce_marker”8bn in 2013-14. The Government said it expects the deficit to fall to id=”mce_marker”0.9bn in 2014-15 and return to a small surplus ($800m) by 2015-16.
Mr Swan said expected tax receipts are down $60bn over the 4 years to 2015-16. Since last year’s Budget, he said expected tax receipts for 2012-13 had been “written down” by id=”mce_marker”7bn. He said company taxes, CGT, and resource rent taxes “have all been hit”. Mr Swan said almost id=”mce_marker”70bn had been wiped off tax receipts since the GFC.
In last year’s Budget, the Treasurer said the Australian economy was expected to grow at 3% in 2013-14. In the 2013-14 Budget, that figure has been revised down to 2.75% and 3% in 2014-15.
An outline of the major announcements is given below.
Revenue measures announced – The major revenue measures announced in the Budget included:
- A significant package of measures targeting multinational profit shifting structures: thin cap ratios reduced; CFC changes; foreign exempt income; non-portfolio dividends; etc.
- Changes to Australia’s foreign resident CGT regime.
- Measures to prevent “dividend washing” and doubling up of franking credits.
- Consolidation: loopholes to be closed; new Tax Board recommendations made and Govt responses.
- Restriction on immediate deduction for mining rights and information.
- Changes to OBU regime from 1 July 2013.
- Compliance improvements through third party reporting and data matching.
- Phase-out of medical expense tax offset.
- Baby Bonus to be abolished and replaced from 1 March 2014.
More information on the tax and related announcements is also contained in a number of Budget press releases – see the Treasurer’s website and the Assistant Treasurer’s website.
Where to get Budget documents – On the web – The 2013-14 Budget Papers are available at any of the following websites:
2013-14 Central Budget website
Department of Finance and Deregulation
Those websites also link to previous years’ Federal Budget papers going back to 1996-97.
Print copies – The 2013-14 Budget Papers are also available for sale from the CanPrint Communications Pty Limited shopfront in Canberra at 16 Nyrang St, Fyshwick (tel: 1300 889 873) from 7.30pm on 14 May 2013.
The Budget documents can also be ordered through CanPrint Communications Pty Ltd to be posted. An order form can be faxed to (02) 6293 8333; or mailed to: CanPrint Communications Pty Ltd, PO Box 7456, Canberra MC ACT 2610. Full details of purchase options are on the Federal Budget website.
[WTB 20, 14/5/13]