2018-19 Budget which sets out the economic and fiscal outlook for Australia, was handed down by The Treasurer at 7.30pm on Tuesday 8/5/2017.
Some of the key changes are:
- Tax cuts for individual including sole traders and family partnerships:
- Seven-year Personal Income Tax Plan will be implemented.
- Low and middle income tax offset to be introduces up to $530 pa from 2018-19.
- From 1/7/18, top threshold of the 32.5% tax bracket increased from $87,000 to $90,000.
- Medicare levy:
- The 2017-18 Federal Budget measure to increase the Medicare levy from 2 per cent to 2.5 per cent of taxable income from 1 July 2019 will not proceed
- Small business taxation:
- $20,000 instant asset write-off will be extended to 30/6/2019 for small business (Turnover < $10mil)
- Tax integrity
- From 1 July 2019, tax deductions will not be allowed for expenses associated with holding vacant land.
- Significant changes to the calculation of the R&D tax incentive will commence after 1 July 2018.
- Businesses can no longer receive cash payments above $10,000 for goods and services, from 1 July 2019.
- The annual audit requirement for SMSF will be changed to a three-yearly for funds with a history of good record keeping and compliance.
- High income-earners (income > $263,157) who work for multiple employers can nominate that part of their wages not to be subject to SG. This will help to avoid unintentional breach of $25,000 concessional cap due to SG.
- From 1/7/2019, people with low super funds balance will enjoy greater protection from banning of exit fees and changes in insurance policies inside super funds.
- Increase tax integrity
- ATO will be provided more funds to increase compliance activities targeting individual tax payers and their tax agents.
You can read 2018-2019 Federal Budget client briefing from Fenton & Associates Financial Advisers here
You can read Federal Budget 2018: Report from CPA Australia here: Federal Budget 2018: Report
Happy Year End everyone!
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