Welcome to a special edition blog from Avondale Business School giving you a 30 second summary of the 2014/15 Australian Federal Budget.
How it Affects Your:
1. Income
- A number of measures are impacting on individuals incomes (reduction of welfare payments, tax benefits, etc.), which may well have a flow-on affect to organisations via donations and purchasing.
Action Step: Assess how vulnerable your income stream is and plan accordingly.
2. Expenditure:
- Fuel prices will increase with indexation of the Fuel Tax
- Superannuation guarantee increases to 9.5% from 1/7/14
- FBT rate increases in 49% from 1/4/15
Action Step: Review your expenditure budget in light of increases and review all discretionary expenditure.
3. Human Resources:
- Incentives being offered to hire older Australians
- An increase in younger Australians available for hire under the ‘Learn or Earn’ philosophy.
- Paid Parental Leave
Action Steps:
- Consider the option of older Australians for your next position to capitalise on the financial incentive.
- Be aware of a potential influx of available younger Australians coming into the hiring pool.
- Be familiar with the provision of the paid parental leave scheme for any workers seeking time off for such reasons.
Other Measures still under consideration and discussion include the taxation of charities business income. This is a wait and watch item.
Industry Specific:
Aged Care:
A number of funding programs have been reduced or removed. As more details emerge providers should be in contact with their industry representatives for the finer details.
Schools:
The government has not proceeded with the full implementation of the Gonski review recommendations. The details and implications of this are being reviewed by education associations and schools should maintain contact with them for the full details.
Useful Links:
More details will emerge over time on the budget as the fine details come to light. It would be well to remember that ‘The Devil is in the Detail’
The Avondale Business School can advise your organisation on being effective in these areas – find out how by contacting Warrick Long at the Avondale Business School.
P: 02 4980 2168