Budget has little for families
THE cost of living pressures affecting Ipswich residents were not addressed in this year’s Federal Budget, according to an Ipswich accountant.
Dean Gibb, a director at Gibb Accountants in Booval, said it was “a fairly lacklustre budget overall” with mixed news for Ipswich families and small businesses.
He said for families and individuals, there have been no changes to the income tax rate.
“To the average person, there’s probably not a huge amount that might affect them – it hasn’t got a lot of deep effect on the average person,” Mr Gibb said.
“People are struggling out there with the cost of living. I don’t really think that the budget has really addressed the concerns of cost of living.
"With interest rates likely to step up over the next 12 months, it’s quite tough out there for families.”
He said the expansion of the education tax refund to cover school and sports uniforms was a win.
A negative was the removal of the dependant spouse rebate from the first of July 2011.
Mr Gibb said overall it was a mixed bag for small businesses.
“The bigger one from a negative side of things is they’re removing the low-income tax offset for minors that are earning unearned income,” he said.
“Typically, if a business is being run by a family trust, they can distribute normally, $3333 a year tax free down to minors in unearned income.
“But with the removal of the low-income tax offset, that comes down to $416 a year.”
On the positive side, he said, there would be an immediate write-off of $5000 for any motor vehicles purchased after the first of July, 2012.
“That will help out.
"It’s more bringing forward an immediate deduction in that financial year,” he said.