2018 Budget Update
2018 Budget Update: The Government handed down its 2018/19 Federal Budget on Tuesday 8th May 2018.
Some of the important proposals include:
- The introduction of the ‘Low and Middle Income Tax Offset’, a temporary non-refundable tax offset of up to $530 p.a. to Australian resident low and middle income taxpayers for the 2019 to 2022 income years.Â This offset will apply in addition to the Low Income Tax Offset. To find out if your eligible you can use our income tax calculator.Â Â
- Providing tax relief for individual taxpayers by progressively increasing some of the tax brackets (including an increase in the top threshold of the 32.5% personal income tax bracket from $87,000 to $90,000 from 1 July 2018), and eventually removing the 37% tax bracket entirely.
- The $20,000 immediate write-off for small business will be extended by a further 12 months to 30 June 2019 (i.e., for businesses with aggregated annual turnover less than $10 million).
- From 1 July 2019:
- Increasing the maximum number of allowable members in an SMSF from four to six members;
- Ensuring that unpaid present entitlements (or â€˜UPEsâ€™) come within the scope of Division 7A; and
- Denying deductions for expenses associated with holding vacant residential or commercial land.
Please Note: Many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the informationâ€™s applicability to their particular circumstances.
National Tax & Accountantsâ€™ Association Ltd.