Highlights
Last night (8 May 2018) the Treasurer, Mr Scott Morrison, handed down the 2018-19 Federal Budget, being his third Budget and the current Coalition Government’s second since the last (2016) Federal Election.
A key component of the Budget is delivering tax cuts to low and middle income earners, which will be phased in from the 2019 year.
There is also a strong focus on greater integrity in the tax system through the Black Economy measures and other more targeted and specific amendments.
Small to Medium Businesses
Small to medium businesses will benefit from the extension of the $20,000 immediate asset write-off, but may be impacted by no Small Business Concessions for assignment of Partnership Rights.
Integrity Measures
Integrity measures announced include:
- Circular trust distributions
- Division 7A
- Deductions for vacant land
Read our summary to determine how they may affect you and your business.
Corporate & International Businesses
The Government is committed to fully implement the previously announced 10-year Enterprise Tax Plan and to reduce the tax rate for all companies to 25% by 2027.
R&D Tax Incentive
The Budget includes a range of changes to the R&D Tax Incentive which will take effect from 1 July 2018.
Budget Insights for Individuals
We’ve summarised the key issues affecting individuals in the middle market in our 90 second budget update video.
Individuals
Individuals will benefit from a seven-year Personal Income Tax Plan and the decision not to proceed with the 2017/18 Federal Budget measure to increase the Medicare levy from 2% to 2.5%.
Superannuation
From 1 July 2019, SMSFs with a history of good record-keeping and compliance (with clear audit reports and annual tax returns lodged on time) for three consecutive years, will be eligible for a three-year audit cycle rather than the current annual audit requirement.
Budget Insights for Businesses
We’ve summarised the key issues affecting businesses in our 90 second budget update video.
