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.
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 is passed by Parliament.
Follow this link for an overview of what we see as the key proposals, which are briefly detailed below.
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.
Please contact your Adviser if you have any questions regarding how these proposals may affect your individual circumstances.