1. Federal Budget

2. This is general advice only
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3. Federal Budget

4. 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

5. Federal Budget overview
Super
Taxation
Social security

6. Super

7. 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

8. 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

9. Taxation

10. 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

11. Personal income tax cuts

12. 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

13. Personal income tax cuts
Marginal rate
2018/ /22
2022/ /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 +

14. 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

15. Social Security

16. 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

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

18. 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.