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The 2018 Federal Government Budget address has been delivered in Canberra overnight. This summary is focussed on the major changes to individual and family personal finances grouped into three main areas – tax planning, superannuation & retirement planning and government benefit planning.
- Income tax reductions through changes to the tax offset arrangements and tax bracket levels.
- Medicare levy low income thresholds to be increased.
- Proposed Medicare Levy increase from 2% to 2.5% scheduled from 1 July 2019 will not proceed.
- Extension of the $20,000 instant asset write-off for small business to 30 June 2019.
Superannuation & Retirement Planning
- Maximum number of allowable members in SMSFs will be increased to six from 1 July 2019.
- Three-yearly audit cycle for some SMSFs.
- Introduction of a measure to prevent inadvertent concessional cap breaches by high income earners.
- Superannuation work test exemption for recent retirees.
- Changes to superannuation insurance arrangements.
- Introduction of Superannuation fee protection measures.
- Introduction of a Retirement Income Framework.
Government Benefit Planning
- Age Pension Work Bonus increased to $7,800 per annum and available to self employed.
- Expansion of the Pension Loans Scheme.
- Increases in the number of available Home Care Packages.
Whilst the income tax breaks grabbed the attention of the media, there were a multitude of changes in the 2018 Budget that will need to be worked through by singles, couples and families depending on your age and circumstance.
If you would like to discuss any of the details contained in the budget and how those details impact your personal situation, please do not hesitate to be in contact.
This document has been prepared as a brief summary of the 2018 Federal Budget as it impacts on personal finances. It is a publication of A Clear Direction Financial Planning. It contains general financial information. Readers should check this information with a professional financial adviser before acting on any of the material contained in this document.