Please find some relevant highlights from the Budget 2018.
These are just some of the items that I think are relevant to you. I have also provided some links on Facebook yesterday, they also appear below.
Please call me if you would like to discuss any of the Budget measures.

There are a large number of tax-related measures contained in the Federal Budget handed down on 8 May 2018.
Small business
• Instant write-off – the $20,000 immediate write-off for assets is being extended to 30 June 2019.
The accompanying ‘lock out’ rules for applying the simplified depreciation rules will be suspended to the same date.
Individual taxation
A new low and middle income tax offset (in addition to the LITO) will come from 1 July 2018:
• a benefit of up to $200 for taxpayers with taxable income of $37,000 or less.
• between $37,000 and $48,000, the value of the offset will increase at a rate of three cents per dollar to the maximum benefit of $530.
• between $48,000 to $90,000 the maximum benefit will be $530.
• from $90,001 to $125,333, the offset will phase out at a rate of 1.5 cents per dollar.
The top threshold for cutting in the 32.5% rate will change from 1 July 2018 to $90,000 from $87,000.
From 1 July 2022 Government will:
• increase the LITO from $445 to $645
• extend the 19 per cent personal income tax bracket from $37,000 to $41,000.
• the increased Low Income Tax Offset will be withdrawn at a rate of 6.5 cents per dollar between incomes of $37,000 and $41,000, and at a rate of 1.5 cents per dollar between incomes of $41,000 and $66,667.
• further increase the top threshold of the 32.5 per cent personal income tax bracket from $90,000 to $120,000.
From 1 July 2024 Government will extend the top threshold of the 32.5 per cent personal income tax bracket from $120,000 to $200,000, meaning the top marginal tax rate of 45 per cent will apply to taxable incomes exceeding $200,000 and the 32.5 per cent tax bracket will apply to taxable incomes of $41,001 to $200,000.
Medicare levy thresholds have been retrospectively increased:
• The threshold for singles will be increased from $21,655 to $21,980.
• The family threshold will be increased from $36,541 to $37,089.
• For single seniors and pensioners, the threshold will be increased from $34,244 to $34,758. The family threshold for seniors and pensioners will be increased from $47,670 to $48,385. For each dependent child or student, the family income thresholds increase by a further $3,406, instead of the previous amount of $3,356.
From 1 May 2018 certain Veteran’s payments (supplementary amounts (such as pension supplement, rent assistance and remote area allowance) of Veteran Payment paid to a veteran, and full payments (including the supplementary component) made to the spouse or partner of a veteran who dies) are tax exempt.
Division 7A
Government will defer the Board of Taxation recommendations to 1 July 2019.
It was announced that ‘Government will ensure that unpaid present entitlements come within the scope of Division 7A of the Income Tax Assessment Act 1936 from 1 July 2019’. It is not clear whether this is an admission that the ATO stance on such amounts is incorrect
• From 1 July 2019 a SMSF can have up to 6 members.
• From 1 July 2019 funds with 3 years of clear audit reports will only be required to be audited every three years.
• From 1 July 2019 the work test will not apply to someone between age 65 – 74.
• From 1 July 2018 a person earning more than $263,157 with multiple employers will be able to nominate that wages from some employers not be subject to SG, to prevent breaches of the $25,000 CC cap.
• Inactive member accounts below $6,000 will need to be transferred to the ATO from 1 July 2019.
• From 1 July 2019 a 3% cap will be put on passive fees charged by funds on accounts with balances below $6,000 and all exit fees will be banned.
• Insurance in superannuation from 1 July 2019 will no longer be able to be offered on a default basis for members with low balances of less than $6,000; members under the age of 25 years; and members whose accounts have not received a contribution in 13 months and are inactive.
Integrity measures
• From 1 July 2019 there will be a $10,000 cash payment limit so that cash payments of $10,000 or more cannot be accepted to prevent black economy transactions.
• Directors will be liable for unpaid GST, LCT and WET in addition to PAYG and SGC – no implementation date was attached to this measure.
• Phoenix offences will be introduced – no implementation date was attached to this measure.
• Directors will not always be able to resign if it will leave a company without a director – no implementation date was attached to this measure.
• From 1 July 2019 payments that have no PAYG withheld where PAYG should be withheld (either because they are employment related payments or no-ABN payments) will be denied deductibility.
• From 1 July 2019 the TPRS will cover security providers and investigation services, road freight transport and computer system design and related services.

2018 Federal Budget Update for Businesses William Buck

2018 Federal Budget Update for Individuals William Buck

FPAA Budget Wrap 2018