Last night Scott Morrison handed down his third budget and he was feeling quite generous. Here is a quick overview of the goodies announced as well as a link to a more detailed analysis.
The Budget winners
- Low and middle-income earners – will benefit from annual tax savings of up to $530 per person.
- Small businesses – $20,000 instant asset tax write-off is being extended until June 30, 2019, for businesses with turnover less than $10m.
- Age Pensioners – under the Work Bonus, pensioners will be able to earn up to $300 (currently $250) without it affecting their pension payments. Self-employed retirees will be able to access the scheme for the first time.
- All Australians over Age Pension age – The Pensions loan scheme will be available to all Australians over Age Pension age and the maximum payments will increase to 150% of the full Age Pension.
- Anyone who pays super – A 3% annual cap on fees for accounts with less than $6,000 will be applied. Exit fees on super accounts will be banned. The ATO will reunite inactive accounts with balances less than $6,000.
- People under 25 – Life insurance can only be offered in super on an ‘opt-in basis’ to new members under 25 years of age or members with inactive accounts or an account balance under $6,000.
- Beer drinkers – Craft beer breweries will receive a tax cut, which means cheaper beer.
Some other key budget measures:
- Employers who hire older Australians will receive a $10,000 wage subsidy.
- Dropping the planned 0.5% Medicare levy increase.
- A plan for broader tax cuts starting in 2022, which from 2024 includes removing the 37% tax bracket and having the 32.5% tax bracket go all the way up to $200,000.
- Increased spending on home aged care, various concessions for older Australians related to superannuation contributions and work tests, more hospital funding and new products listed on the Pharmaceutical Benefits Scheme.
- An extra $25bn in infrastructure spending including the Melbourne rail link, Bruce Highway, Gold Coast/Brisbane M1, road and rail in WA and North-South Corridor in SA.
There were many announcements made in the Federal Budget that we have not covered above. Please click on the link below for a detailed analysis.
If you would like to discuss anything in this year’s Federal Budget please contact us on 07 3348 9400 or send us a message.