Treasurer Scott Morrison handed down his third budget on Tuesday, 8 May. Leading into an election year, the budget was widely touted as being “boring”, however that may be a good thing for IPros and businesses. With no extreme measures and some small wins for both business and workers, there is something in it for everyone.
Our Entity Business and Tax (EBAT) division and our financial Services division , via our partner, FMD Financial, have summarised the key elements.
We provide a summary of the 2018/2019 Federal Budget, to make it easier to understand the aspects that may be relevant to you.
Some key changes for individuals and businesses include:
- Reduction in personal income tax – tax breaks for low and middle income earners of up to $530 a year, or $10 a week, from next year
- Small business asset write off extension – In a win for small business, the instant asset write offs for purchases under $20,000 will be extended
- Superannuation exit fees banned – People considering changing funds will benefit from the government’s plans to ban exit fees on all superannuation funds from July 1, 2019. Included in the changes will be a 3% annual cap on passive fees charged by super funds for accounts with balances under $6000
- The Medicare levy remains unchanged at 2% – This is great news for higher income earners, as there was talk of a 0.5% increase
- Compulsory super contributions for higher earners scrapped -For people earning over $263,157, the government has removed compulsory super contributions that may take them over the cap of $25,000.
- Self Managed Super Funds – For those with Self Managed Super funds, you will now be able to increase the number of members in the fund from four to six. If you have ensured your compliance and good record keeping, the audit requirements can be done every three years as opposed to annually.
Please read FMD Financial’s 2018 Federal Budget summary for a more in depth analysis of the impending changes.
Contact Entity Solutions today on (03) 9600 0333 if you are an IPro and would like to find out how we can assist you with financial services through our partner, FMD Financial. If you are a business and would like to find out how your contingent workforce would benefit from our Contractor services, such as Financial Health assessments and Tax and Accounting services, contact us to speak with our expert Customer Delivery Managers.
Find out how the 2018 Federal Budget affects you.Download