Happy New Year! Now that there are new laws and tax rates to apply from this week onwards, I thought I might give you the upper hand on wat the main parts have changed which will more than likely affect you.

The new tax rates means that the 30 per cent income threshold is increased from $34,000 to $35,000 and the 40 per cent tax rate is reduced to 38 per cent.

An individual on $40,000 a year will get an extra $2.88 a week, while someone on $100,000 a year will get an extra $10.58 a week.Don’t go and spend it all at once!

The Family Tax Benefit A has also risen by $5.60 a fortnight for each child 12 and under and by $7.28 a fortnight for teens aged 13-15.

The baby bonus will increase by $185 to $5185, while childcare benefits for one child using full-time care will increase by $6.50 a week to $180, and the maximum childcare rebate will rise by $278 to $7778 per child per annum.

If you were planning on putting larger sums of money in your transition to retirement in the coming years, I wouldn’t hold your breath with a decrease in the super contribution cap being halved - from $50,000 to $25,000 for those under 50 and from $100,000 to $50,000 for those older than 50. After the past few years, and maybe those to come, you will need to top up that super balance before retirement.

A huge bonus for NSW residents is the NSW Government will cut duty by 50 per cent for people buying newly built properties with a value not exceeding $600,000 from July 1. If you tie that into your $2.88 week saving, you may be going places! Unfortunately, the savings you make up on the stamp duty, will be taken back in parking levies for those living in Sydney with levies doubling as of 1 July from about $950 to about $2,000 near the city, and marginally less in the inner West.

VICTORIA

First homebuyers in Victoria are eligible for up to $36,500 in grants. The Victorian Government will provide up to $22,500 for those buying new houses in regional areas and $18,000 for those buying in metropolitan areas. This is in addition to the $14,000 Federal grant.

QUEENSLAND

not much to write home about in Queensland with rates are also set to soar in south-east Queensland. They will jump 8.7 per cent in Redland, 5.4 per cent in Moreton Bay, 6.45 per cent in Brisbane, 7.5 per cent in the Sunshine Coast and 6.9 per cent in Logan. I suppose that will give the NSW counterparts something to finally smile about once the football season is over.

South Australia

In South Australia stamp duty will be eliminated for mortgages and rentals in a move set to cost its State Government $183 million over four years. So, some very positive news there. Interstate Pollies watching the SA government at all???

So, in the end, there are some very positive cuts in tax and increases in general bonuses, which hopefully will give business the kick along it’s been waiting for.

Is there anything the governments can implement that would dramatically benefit yout local area or demographic?

Have a great New Year.

PD