Federal Budget 2009 - Winners and Losers

By Sandy Naidu | May 14, 2009

Here is a gist of the winners and losers in Budget 2009:

Winners

1. Low Income Earners: The tax cuts leave them better off.

2. Middle Income Earners: Tax cuts is a plus. But some will be hit by private health insurance changes and superannuation cap for salary sacrifice.

3. Pensioners: Increase in pension income

4. Carers: Carer income supplements announced

5. First Home Buyers: Extension of the first home buyers boost is a positive.

6. Companies: Small businesses gain from increase in deduction for capital assets. Spending for some large infrastructure projects were announced in budget 2009. Companies will benefit from this.

7. Parents: Paid parental leave a step in the right direction

Losers

1. Baby Boomers: Increase in pension age to 67. I personally think this was kind of inevitable - but having said that I will be quite sad if age for accessing superannuation also increased. Nothing announced on this as yet.

2. High Income Earners: Changes to private health insurance, medicare levy surcharge increase, superannuation changes - quite a few negative things for this category.

3. Middle Income Earners: Though they get some tax cuts, they lose out on superannuation changes and the private health insurance changes.

This was always going to be a tough budget - we are in tough times and so no major benefits can be announced. Increased infrastructure spending is a good thing - will boost economy.

What are your thoughts about the Budget 2009? Share your thoughts below