12 May 099 IntroductionAt 7.30pm on 12 May 2009, the Treasurer, Wayne Swan, delivered the 2009-10 Commonwealth Budget, the second for the Rudd Labor Government. The Treasurer is forecasting a cash deficit for the 2009-10 year of $57.6 billion (being 4.9% of GDP), with the fiscal or accrual deficit estimated at $53.1 billion (being 4.5% of GDP).
After all the pre-Budget leaks, there are very few tax surprises in the Budget. One surprise is that the denial of non-commercial losses is to be limited to taxpayers with an adjusted taxable income of over $250,000, with the existing rules to continue to apply to other taxpayers.
As foreshadowed, the concessional contributions caps, including the transitional cap for over 55s has been halved from 2009-10.
The Government has also used the Budget to release its response to a number of Board of Taxation reports.
A summary of the Budget details are set out below.