For Pacific Highway travellers, the Coffs Harbour Bypass has been funded – into the future!
But I digress, if you thought that the highlight of an accountant’s working year is the hype on Budget night – this isn’t so. We are more concerned with the increasing level of complexity that each Budget delivers. So what did we get from Tuesday night? Like the previous year’s budget, the devil is in the detail – and such will depend upon the negotiation with the cross benches before we see the final legislation.
Some items that may come to pass:
- Personal tax rates: from 1 July 2018 there will a small change to the tax brackets. For example, those earning over $90,000 per annum will see a saving of $135 per annum. There are further changes suggested for the longer term, but for the moment we will wait and see them materialise.
- Personal tax offset: a tax offset of a maximum $530 per annum will be introduced for those earning up to $90,000 per annum. This will be received as part of your tax returns lodged after 30 June 2019.
- Small business instant asset write-off: businesses with an annual turnover of less than $10 million can continue to claim the instant asset write-off for assets that cost less than $20,000 (this was scheduled to end 30 June 2018).
- Business wage deduction: businesses will not be able to claim a wage deduction if Pay As You Go (PAYG) Withholding has not been reported and paid to the ATO.
- Deductions for vacant land: from 1 July 2019, a deduction for expenses associated with residential and commercial vacant land will not be allowed (as always, there will be a few exceptions to the rule).
- Superannuation changes from 1 July 2019:
o An increase of allowable members from 4 to 6
o An exemption from the work test will provide members aged 65-74 options for voluntary contribution
o Certain fees will be capped on balances less than $6,000
o Funds with clear audit reports will be eligible for triennial SMSF audits
- Pension work bonus: the income threshold will be increased to $300 per fortnight from 1 July 2019 allowing pensioners to earn more without impacting their pension. This will also be extended to self-employed retirees
This is only a brief summary of some announcements from Budget night. Please call our office on (02) 6652 2333 if you would like to discuss the Budget in further detail.
– Posted 11.5.18
This article is compiled as a helpful guide for your private information and is subject to copyright. We suggest that you do not act solely on the basis of material contained in this article because items are of general nature only and may be liable to misinterpretation in particular circumstances. We recommend that our advice be sought before acting on any of these crucial areas.