ARTICLE · 11 MAY 2011

2011/12 Federal Budget Summary

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Overview major Budget announcements in Australian Federal Budget 2011/12

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The major Budget announcements were:

Individuals

Dependent spouse rebate

Will be phased out for dependent spouses aged less than 40 to encourage them to go back to work. The exception is for taxpayers with an invalid or permanently disabled spouse, supporting a carer, or people who are eligible for the zone, overseas forces and overseas civilian tax offsets.

Low income tax offset for low to middle income earners

The low income tax offset that is delivered to low and middle income earners through their regular pay during the year will be increased from 50% to 70% of their total entitlements from 1 July 2011. The remaining 30% will be paid on assessment of the income tax return for the relevant year.

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