Special Pherrus Federal Budget 2018-19 Review

Published on May 9, 2018

Special Pherrus Federal Budget 2018-19 Review

The federal budget has been outlined for 2018-19.

This year’s Budget highlights a mix of some 37 measures. What are the need to knows?

Here are the Big Ones

Personal Income Tax Relief – there will be an immediate offset for low to middle income earners. Further relief is planned over 7 years
The company tax rate is still pegged to be reduced to 25% by 2020.
No Medicare Levy increase, it will stay at its current 2%.
Infrastructure spending will be huge at a whopping $24 Billion
Expect Superannuation changes. These Which will impact, Self Managed Superfunds, Fees, Inactive accounts and Insurance. Although no major news on this yet
The Black Economy will be targeted. The Government is going to funnel a lot of their investment into building up the ATO.
Small business $20,000 write off for Assets extended to 30 June 2019
From 1^st of July 2019, the government will allow the ATO to impose a tax on Family Trust distributions at a rate equal to the top personal tax rate.
Small Business CGT Concessions will have an integrity measure in place, especially for businesses with annual turnover less than $2Million.

What will the Personal Income Tax Adjustments look like?

CURRENT			PROJECTED
	Rate	% of taxpayers in this bracket		Rate	% of taxpayers in this bracket
$0 – $18,200	Nil	22%	$0 – $18,200	Nil	21%
$18,201 – $37,000	19%	22%	$18,201 – $41,000	19%	21%
$37,001 – $87,000	32.5%	53%	$41,001 – $200,000	32.5%	73%
$87,001 – $180,000	37%	20%	$200,000 +	45%	6%
$180,000 +	45%	5%

The ATO Will Be Backed With A Solid Investment

A strong theme in the narrative accompanying the 37 Treasury revenue measures is the additional funding being allocated to the ATO and related organisations. The Government seems to be determined to properly resource the ATO and related organisations.

This is evident from a number of measures including :

Personal income tax measures to ensure individuals meet their tax obligations ($130.8 million);
Delivering on debt collections and improvement in timeliness of debt collections ($133.7 million);
Enhancing ATO enforcement against the Black Economy ($318.5 million);
R&D measure providing additional funding to the ATO and the Department of Industry, Innovation and Science (amount not specified);
Assorted other measures relating to aspects of superannuation and payroll and superannuation fund reporting.

Overall, the measure seeking to ensure individuals meet their tax obligations alone is estimated to raise some $1.1 billion over the forward estimates.

If you would like to discuss any of the above budget projected changes, contact your Pherrus Team member today.

Accounting, ATO, Federal Budget, Tax Advice, Tax Compliance, Tax Deductions, Tax Refund,

tax, ATO, advice, federal budget,

The Insights published on our website have been written by our professional staff strictly for educational purposes. Please note that the information and views expressed above do not constitute professional advice and are general in nature only.

Other Insights from Pherrus

What You Need To Know About Total Reportable Fringe Benefits

Are you considering a job that offers more than just a salary? Perks like a company car or gym membership can make a job offer much more tempting! Before signing the contract, you must understand the Total Reportable Fringe Benefits Amount (TRFBA). While you don’t pay income tax directly on your TRFBA, it can impact…
Ready To Grow? Your Guide to SME Loans in Australia

Running a small or medium-sized enterprise (SME) comes with big opportunities…and big challenges, too! You’ve got the vision, the drive, and the market demand. But when it comes to cash flow, things may not always add up the way you’d like. Maybe you need funding to expand, invest in equipment, or cover unexpected costs. That’s…
Retail Accounting and the Retail Method

You’re great at running your store: keeping customers happy, managing stock, and making sales. But when it comes to accounting, it’s a different story. One look at your financial reports, and you’re thinking, Why does this all look like a foreign language? If you’ve ever struggled with inventory numbers that don’t match, profit margins that…