2018 Federal Budget Announcement

By Count Financial

On Tuesday 8 May, the federal government handed down its Budget for the 2018–19 financial year. This is the third Budget delivered by Treasurer Scott Morrison and is likely to be the final Budget before the next federal election.

According to the Treasurer, this year’s Budget measures aim to provide tax relief to ordinary Australians, while supporting small-to-medium businesses and improving Australia’s essential services. The Treasurer claims that these measures will help to end Australia’s decade-long deficit and return a modest surplus of $2.2 billion by 2019–20.

Here are some of the announced Budget changes that could affect you. However, it’s important to remember that these are only proposals at this stage, and each proposal will only become law once it’s passed by Parliament.

Tax changes:

  • A seven-year personal income tax plan, to be delivered in three stages Maintaining the Medicare Levy at 2%

  • Increasing the Medicare Levy’s low-income thresholds

  • Extending accelerated depreciation for small businesses

Superannuation adjustments:

  • A work test exemption for retirees

  • Increasing SMSF membership from 4 to 6 members

  • Introducing a three-year audit cycle for some SMSFs

Supporting mature Australians: 

  • New means testing rules for certain lifetime income streams

  • Expanding the Pension Work Bonus

  • Extending eligibility for the Pension Loan Scheme

  • Increasing the availability of home care packages

  • Additional funding for residential aged care and short-term restorative care

To read the full report click the link below


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