So, it’s that time of year again already! The federal budget is going to be announced tomorrow night, and economists, investors and general citizens alike are making predictions left, right and centre.

Here’s a few things we’re expecting:

  • A tax cut on bank interest, equivalent to a 40% discount on the tax payable.
  • Tax cuts for small businesses, by either increased offsets and/or lower company tax rates.
  • Added superannuation benefits for low-income earners, through a government contribution to cover some (or all) of your fund’s taxes.
  • The usual small income tax cuts for individuals are already scheduled and unlikely to be adjusted.
  • Rental income and negative gearing to remain unchanged.
  • For those individuals with simple tax affairs (which, incidentally, is not most of you), filing a tax return should become a much more simplified affair with one-click processing to become the standard with the tax office already able to see your occupation, wages, tax withheld, interest and dividends earned. It’s almost a little scary…

We’ll find out all the details tomorrow night, of course, but that’s a brief summary of what we think will affect you most. There will be the usual election-year sweeteners, we’re sure, but by all accounts from the media and those supposedly in the know… there’s won’t be anything overly exciting.

And of course, check back here on Wednesday for the full wrap of what’s announced overnight. We’ll have it all here to explain just what it means for you as investors.