2015 Federal Budget summary

2015 Federal Budget summary
On 12 May 2015, the Treasurer released the 2015/16 Federal Budget. Key points to note are:
ƒƒ the budget deficit is forecast to fall from $35.1 billion in 2015/16 to $6.9 billion in 2018/19.
ƒƒ real GDP growth is forecast to increase from 2.5% in 2014/15 to 2.75% in 2015/16 and 3.25% in 2016/17.
ƒƒ unemployment is expected to increase slightly from 5.9% in 2013/14 to 6.25% in 2014/15, and 6.5% in 2015/16, before
falling in 2016/17. Labour force participation rates are expected to remain close to current levels and then improve.
Superannuation was left largely untouched; there were no changes to the taxation of super benefits, contribution
caps or to the age requirements to access super or the Age Pension. However, there were some significant
announcements regarding eligibility tests for the Age Pension, which may affect our pension members.
The following announcements are yet to be passed as law by Parliament, and therefore may change or not
become law.
If you’re working or saving for the future,
you may be interested to know:
ƒƒ The SG rate remains unchanged at 9.5% until
30 June 2018
If you’re approaching retirement or have
already retired, you may be interested to
know:
ƒƒ Finding your lost and unclaimed super is set to
become easier and more streamlined
ƒƒ From 1 January 2017, asset-test thresholds will
change significantly, leading to tightened pension
eligibility testing
ƒƒ If you are terminally ill, you will be able to access your
super earlier
ƒƒ Pension taper rates will increase from 1 January 2017
from $1.50 to $3.00 per fortnight
ƒƒ there will be an increase in the Medicare levy
threshold for low-income taxpayers
ƒƒ Last year’s proposal of indexing pensions by CPI only
has been ditched - payment rates will continue to be
indexed under current arrangements
ƒƒ fast-tracking of financial incentives for employers to
hire mature-aged workers
Changes to superannuation
Making lost and unclaimed super easier to find
In an attempt to help people find and reclaim their lost super and boost their retirement savings, from 1 July 2016 the
government will cut red tape to streamline the process for super funds and the ATO.
Easing criteria for access to super for terminally ill people
The Goverment aims to give people suffering a terminal medical condition earlier access to their super.
Currently, two medical practitioners must certify that a terminally ill person is likely to die within one year - this will change to
two years, and will give those in need earlier access to their super.
1 • Fact sheet • 2015 Budget summary - May 2015
Changes which may affect pensioners
Proposed assets test thresholds from 1 January 2017
Under the proposed changes, the value of assets you can have in addition to the family home to qualify for the pension
will change significantly as follows:
Homeowner
full pension
Homeowner
cut-out (estimated)
Non-homeowner
full pension
Non-homeowner
cut-out (estimated)
Single
$250,000
(currently $202,000)
$547,000
(currently $775,500)
$450,000
(currently $348,500)
$747,000
(currently $922,000)
Couple
$375,000
(currently $286,500)
$823,000
(currently $1,151,500)
$575,000
(currently $433,000)
$1,023,000
(currently $1,298,000)
Asset test taper rate to increase
From 1 January 2017, the taper rate will increase from the current $1.50 per fortnight per $1,000 of assets over
the lower threshold to $3.00 per $1,000 of assets. This means that, for every $1,000 of assets over the asset-free
threshold, the pension rate will reduce by $3.00 a fortnight.
Axing of CPI indexation for pensions
The Government has decided not to proceed with the proposed measure to link pension increases to inflation (CPI) only.
Payment rates will continue to be indexed under current arrangements by the higher of increases in various indexes.
Other budget announcements
ƒƒ Increase in low-income thresholds for the
Medicare levy: the Government will increase the
Medicare levy threshold for low-income earners,
so that they will generally continue to be exempted
from paying the Medicare levy.
ƒƒ Fast-tracking of incentives for businesses
who hire mature-aged workers: the Restart
wage subsidy scheme has been boosted to
fast-track payments to employers - businesses will
only have to wait one year (currently two years) to
get up to $10,000 to employ a worker who is aged
50 and over who has been unemployed for six
months or more.
ƒƒ Access to the Paid Parental Scheme will be
restricted: this is aimed at preventing ‘double
dipping’ for parents who benefit from the paid
parental leave scheme to prevent them from
receiving payments from both the government and
their employer.
ƒƒ Limiting of pensions for those not living in
Australia: reduction from 26 weeks to 6 weeks
for some pension recipients who do not live
permanently in Australia.
ƒƒ Increase supervisory levies by $46.9m
over four years: will raise additional revenue
by increasing the supervisory levies paid by
financial institutions to fully recover the cost of
superannuation activities undertaken by the ATO
and the Department of Human Services.
ƒƒ Funding over four years to improve the way
home care services are delivered: designed to
reduce regulation and give older Australians greater
choice over their future.
Toll Free
1800 757 607
8.30am - 5.30pm AEST
Email
info@maritimesuper.com.au
Website
www.maritimesuper.com.au
Fax
02 9261 3683
Issued by Maritime Financial Services Pty Limited (MFS) ABN 16 105 319 202 AFS Licence No 241735. This document provides general information only and has not been prepared having regard to your
objectives, financial situation or needs. Before making an investment decision, you need to consider whether this information is appropriate for your objectives, financial situation and needs. The information has
been compiled from sources considered to be reliable, but is not guaranteed. Any examples have been included for demonstration purposes and should not be relied upon for the purpose of making an investment
decision. Past performance is not a reliable indicator of future performance. Copies of the Product Disclosure Statements and MFS’ Financial Services Guide are available by calling Member Services.
This publication is current at date of issue and may be subject to change The Fund is Maritime Super ABN 77 455 663 441, and the Trustee is Maritime Super Pty Limited ABN 43 058 013 773.
2 • Fact sheet • 2015 Budget summary - May 2015