Budget 2018-19

The Honourable Scott Morrison handed down his third Federal Budget on Tuesday night.

Please see below some key points of the budget:
$20,000 Small Business Instant Asset Write Off Extension
The ability for small business entities to claim an immediate deduction for assets costing less than $20,000 has been extended until 30 June 2019.

Personal Income Tax Cuts
The anticipated personal income tax cuts will be delivered as part of a seven year plan culminating in the removal of one tax bracket from 1 July 2024.  The Government states that the end result will be that around 94% of taxpayers will be subject to a marginal tax rate of 32.5%.

Changes to Medicare Levy

The proposal in last year’s Budget to increase the Medicare levy from 2% of taxable income to 2.5% has been scrapped.
The government is also proposing an increase in the thresholds at which the Medicare levy becomes payable for low-income singles, families, and seniors and pensioners starting this financial year.

Regulators Target Phoenixing
Corporation and tax laws will be reformed in an attempt to target phoenix activity.

Work Test Exemption for Retirees
An exemption to the work test will be introduced for people aged 65 to 74 with superannuation balances below $300,000, who make voluntary contributions to superannuation. The exemption applies in the first year that they do not meet the work test requirements.
For those of you who love the detail (we know you’re out there) please click below for more detail.

 

Click Here for 2018-19 Budget 2018