21 May Budget 2018: What’s in it for you
The 2018-19 Budget was handed down on 8 May by Treasurer Scott Morrison who delivered what was widely perceived to be an election Budget with lots of sweeteners for everyone. So what’s in it for you?
While there were no specific tax cuts for businesses, “the Government remains committed to ensuring that Australian businesses remain internationally competitive and will progressively reduce the corporate tax rate for all companies through the 10-year enterprise tax plan.”
The Government will extend the $20,000 instant asset write-off for a further 12 months to 30 June 2019 and small businesses will have additional opportunities to reinvest and replace or upgrade their assets.
Income tax relief
The Government promised to deliver targeted tax relief of up to $530 to middle and lower income earners through a new tax offset for the 2018-19 to 2021-22 income years in addition to the current low-income tax offset, and is expected to provide over 10 million Australians with tax relief.
The Government will also increase the top threshold of the 32.5% tax bracket to $90,000 from 1 July 2018. From 2022-23 the top threshold of the 19% tax bracket will be increased to $41,000 with the low-income tax offset to be increased to $645.
The Government announced superannuation measures, including:
- giving the ATO capacity to reunite Australians with lost and inactive superannuation;
- capping certain superannuation fees at 3% for certain accounts;
- banning superannuation exit fees; and
- tailoring insurance arrangements to be opt-in.
The Government announced the following Budget measures for older Australians:
- expansion of the pension loans scheme to give full pensioners and self-funded retirees the option to boost their retirement income. Full pensioners will be able to increase their income by up to 50% of the Age Pension;
- expansion of the pension work bonus to allow age pensioners to earn up to $300 per fortnight without reducing pension payments. The bonus will be extended to self-employed individuals who will be able to earn up to $7,800 per year;
- exemption from the superannuation work test for those aged 65-74 with balances below $300,000;
- retirees will have greater choice in how they receive their superannuation through the Government’s retirement income framework.
Want to find out more?
Do you want to know more about how this Budget affects you? We will help you find the answers and plan for your future.