In case you missed it, the 2018/19 Federal Budget was handed down last night. You might think it's a snooze-fest but the budget affects everyone! Here is a great recap from IOOF:
There is no doubt this is an ‘election budget’. The Treasurer has taken just under half of the $35 billion of improved revenue and turned it into tax cuts targeted to benefit all Australians.
On the expenditure side, the Government has rolled out the bucks for aged care, and rightfully so. However, 14,000 new aged care places is way short of the 100,000 places currently needed.
All Australians of Age Pension age will have access to the improved Pension Loan Scheme. The Pension Work Bonus will be increased and extended to the self-employed.
The first round of personal income tax cuts will start on 1 July 2018 and include:
These temporary tax concessions will end 30 June, 2022.
We will have to wait until 1 July, 2022, before we get the second round of tax cuts:
Finally, from 1 July 2024, the 37% marginal tax rate will be abolished and the 32.5% tax threshold will be increased to $200,000.
Superannuation got some attention with a series of integrity reforms, changes to self-managed super funds(SMSFs) and small APRA funds (SAFs)
From 1 July 2018, SMSFs and SAFs can increase to six members and SMSFs with good track-records can move from annual to three-year audits.
From 1 July 2019:
All-in-all there are big ticket tax cuts and a lot of little reforms hidden in the woodwork. It isn’t a glamourous budget and there’s likely to be plenty more left in the tank for an election later this year.
Read the full budget analysis by IOOF here: