Federal Budget

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Federal Budget

Let’s keep in mind Budget proposals are not immediately law Some may have effect from Budget night, but still require the passage of legislation to be enacted Not many parliamentary sitting days before May Federal election will need to be called some time shortly Whatever has not been passed is shelved Would require re-introduction by new Government

Federal Budget overview Super Taxation Social security

Super

Improving flexibility for older Australians Increasing the ability for those over age 65 to make contributions ‘Work test’ requirement to apply from age 67 Currently applies if age 65 or over at the time the contribution is made Non-concessional contribution bring-forward trigger extended to age 67 66 or under on 1 July Currently 64 or under on 1 July Spouse contributions can be made to age 74 Spouse work test requirements expected to remain Same caps / rules apply

Reducing red tape for small funds Small fund tax compliance assistance Remove requirements for funds fully in retirement phase to obtain actuarial certificate Unexpected impact from transfer balance cap changes Allow funds flexibility in determining tax free earnings where moving between accumulation and retirement phases

Taxation

Personal income tax cuts Further changes to the ‘ten year personal income tax plan’ Low and middle income tax offset increasing immediately Base rate from $200 to $255 Maximum from $530 to $1,080 Taper rates adjusted to phase in and out at broadly similar points Offset is only temporary Ceases to operate in 2022 financial year

Personal income tax cuts

Personal income tax cuts Future personal tax changes From 1 July 2022, low income tax offset increases to $700 Slight change to taper rate Still phases out at $66,667 From 1 July 2024, 32.5% marginal rate reduced to 30% These are in addition to already legislated changes From 1 July 2022 the 19% marginal rate increases from $41,000 to $45,000 From 1 July 2024 the 37% marginal rate is abolished

Personal income tax cuts Marginal rate 2018/19 - 2021/22 2022/23 - 2023/24 2024/25 + Nil Up to $18,200 19 per cent $18,201 – $37,000 $18,201 - $45,000 30 per cent N/A $45,001 - $200,000 32.5 per cent $37,001 - $90,000 $45,001 - $120,000 37 per cent $90,001 - $180,000 $120,000 - $180,000 45 per cent $180,001 + $200,001 +

Small business instant asset write-off Extending the temporary tax relief measure From 2 April 2019 Instant asset write-off threshold increased to $30,000 Applies on a per-asset basis Available to businesses with turnover less than $50m Must be first used / installed for use between Budget night and 30 June 2020

Social Security

Energy assistance payment One off payment $75 singles $125 couples Welfare recipients in Australia who were receiving payment on 2 April 2019 Pensioners (including Age Pension, Disability Pension and Service Pensions) Carers Single parents Newstart recipients Unsure when this will be paid

Aged care Increased funding More scrutiny of aged care providers Improved payments administration

Questions ? So now we are coming to the end of today’s presentation seminar. I would like to thank you for your time and invite any questions you may have.