Canberra, 11 May 2010 The media has widely labelled the 2010/2011 Federal Budget the ‘no-frills’ budget and they are not wrong. The Government has released a Budget filled primarily with past announcements, leaked initiatives and a myriad of technical amendments.

Download: Budget Summary 2010/2011 The 'no-frills' Budget

Funded primarily by the recently announced Resources Super Profits Tax due to commence on 1 July 2011 and a more buoyant economy (thus stronger tax receipts), the Treasurer was at pains to paint a picture of fiscal responsibility.

The highlight was the economy itself which is expected to return to surplus in three years; three years ahead of the predictions in the 2009/2010 budget forecast.

But (and you know the most important part of any statement is the part that comes after the word ‘but’) it is not the headline issues that are important to the lives of practitioners and their clients, it’s the detail. Being fiscally responsible also means cracking down on revenue leakage including an additional $2.7bn in revenue generated from a boosted GST compliance program.


Key Budget points include:

Real GDP expected to grow to 4% on 2011/2012 as unemployment falls to 4.75% in the same year (placing pressure on skills and wages)

First steps towards the abolition of simple tax returns with a move towards “tick and flick” returns – tax returns replaced with an optional $500 standard deduction from 1 July 2012 and $1,000 from 1 July 2013

Previously announced tax cuts due to commence on 1 July 2010 remain in Budget (as do the changes to the Senior Australians tax offset)

50% discount on tax paid on interest income (on up to $1,000 of interest income).

Medical expenses tax offset increased

More information
Budget website