Below are just summary with not much details (except the bits that I think is more interesting). If you want more details please visit The Federal Budget

For the Retiring…

• Reduction of concessional contribution cap from 1 July 2009
• Temporary reduction of the Government co-contribution from 1 July 2009 to 30 June 2014
• Extension of 50% minimum pension draw down relief from 1 July 2009
• New Zealand retirement savings portability scheme
• Age pension age to increase to age 67 from 1 July 2017
• Increase in government support pension amount from 20 September 2009
• New pension supplement from 20 September 2009
• Pension Bonus Scheme closed to new entrants from 20 September 2009

For the Working Class People
The tax rates has changed slightly

Income Threshold Tax rate

• $0 – $6,000                  0%
• $6,001 – $35,000         15%
• $35,001 – $80,000       30%
• $80,001 – $180,000     38%
• $180,000+                   45%

the threshold for 30% tax rate has been increased from $34,000 to $35,000 and the 40% tax rate has been reduced to 38%.

Other Changes include:

• Changes to income tax exemption for income earned by Australians working overseas from 1 July 2009
• Private Health Insurance Rebate from 1 July 2010
• Paid Parental Leave from 1 January 2011
• Reform of family payments from 1 July 2009

For Low Income Earners
The Government will increase the Medicare levy low income threshold to $17,794 for individuals and $30,025 for individuals in families. The additional amount of threshold for
each dependent child or student will also increase to $2,757.

The Medicare levy threshold for pensioners below age pension age will also be increased to $25,299. This is to ensure that pensioners below age pension age will not have a Medicare liability where they don’t have an income tax liability.

For the First Home Owners

• 1 July 2009 – 30 September 2009:    $14,000 for established homes or $21,000 for new homes
• 1 October 2009 – 31 December 2009:   $10,500 for established homes or $14,000 for new homes
• After 1 January 2009:    $7,000 for established homes or $7,000 for new homes

For Small Businesses

• Additional small business and general business tax break from 13 December 2008
• Modified Pay As You Go (PAYG) instalments relief for small business from 1 July 2009
• Tightening access to non-commercial business losses from 1 July 2009
• Small business CGT concessions

That’s it from me, but keep an eye out for the May Success Tips Newsletter… I’ll be going into a bit more detail about the First Home Owner Grant and just the stock market in general – as I write the US Market is just about to open, the S&P500 has fallen from a high of around 929 to 884 (about 5% from the high of 929) which is the first decent correction since early March 2009