If you sat down at 7:30 last night to watch the announcement of the federal budget for 2018, you may have been a bit overwhelmed. With so many figures and areas of taxation, in order to plunge into the head, we sat down, dismembered and summarized the answers to the question you can ask: “What do I have for me (and my family)?”
Income tax
The treasurer announced plans for a three-stage seven-year plan:
- Step One: Effective low-and middle-income direct workers benefit from tax savings of up to $ 530 per person (or $ 1,060 per pair).
- Step two: from July 1 of this year, the threshold of 32.5% of the tax burden will increase from 87,000 to 90,000 dollars, and then increase again in July 2022 from 90,000 to 120,000 dollars.
- Step three: from 2024–25, only two income tax rates will be set for people approaching more than $ 41,000 a year: 32.5% for incomes from 41,001 to 200,000 US dollars and 45% for incomes exceeding 200,000 US dollars.
- Medicare collection will remain at 2%.
Have you ever considered the possibility of changing your superfund, but considered it costly because of the high exit fees? Great news over the years budget - super funds will soon be banned from charging for exit. But you need to wait until July 1, 2019 to make your move.
Other changes to retirement benefits include:
The law of the termination of the balance, which will automatically add life insurance to the pension policy, regardless of the age of the person, will end. (To date, super-members under the age of 25 pay almost $ 200 million a year for life insurance through pension insurance). Those who are less than 25 years old now have to choose: to purchase life insurance.
Companies can no longer automatically deduct life insurance for all funds where contributions have not been made for 13 months.
According to the Association of Pension Funds of Australia, more than 60% of Australians have several super-funds. Thus, the ATO will turn to inactive super accounts and merge them with their owners. active funds.
- Independent Superfunds (SMSF) can now have 6 members, starting with 4.
- Good record SMSFs will be rewarded through an annual audit of annual audits.
- People over 65 can invest up to $ 300,000 in super resources from selling their home.
- The first home buyers who made super donations under the first Super Saver scheme can get access to their money for the right to buy real estate.
Young people living in rural and remote communities will find it easier to get access to youth benefits while they are away from home (the right to these benefits is based on parental income).
Internships
The federal government will match funding with states and territories to provide internships and internships for high-demand areas for four years. However, there is one caveat: each of the states and territories had to register for it to go ahead.
Aging Australia
In this budget there are a number of changes in favor of older Australians. These include:
- Over the past four years, $ 1.6 billion has been set so that 14,000 older people can stay in their homes and not go to a nursing home.
- $ 20 million for mental health nurses to support older people who still live at home (the government notes that men over 85 have the greatest risk of suicide for all age groups).
- The budget in the amount of 40 million dollars. The US has been allocated to urgent construction and repair work for coordinated care facilities in regional and remote areas.
- To eliminate the chronic shortage of palliative care in nursing homes, $ 33 million was allocated. USA.
- A one-year exemption from the working test will apply to recent retirees who have less than $ 300,000 in super-economical savings.
- The pension loan scheme will be available to all Australians at the age of the age, and the maximum payments will increase to 150% of the full age pension.
- The pension bonus increases to $ 7,800 from $ 6,000.
- Finally, the government has pledged to facilitate a coherent family care system, simplify forms and provide relevant online educational institutions.
To your health
Within five years, it is planned to allocate 130 billion dollars. USA for public hospitals. The government also offered to deal with unnecessary diagnostic tests.
Access your own data. The government announced the creation of a “consumer data right”. This will allow you to control your personal data on the Internet and safely share it with reliable service providers, starting with the banking, energy and telecommunications sectors.
Small business
No budget will be complete without anything for a small business. If you run your business, the current deduction of expenses for eligible assets to $ 20,000 has been extended until July 2019. Another victory: the optimization of GST reporting, which, in turn, will save money - this is a pleasant change of about 2.7 million small businesses.
Brewing beer. There are about 350 artisan brewers in Australia, so most likely you are not one of them. However, most believe that tax changes put small-scale brewers at a disadvantage in order to be a victory for common sense. Beer, sold in barrels over 48 liters, was taxed at a lower rate than small barrels, which was actually favored by large producers. The change leads to a reduction in taxes to beer sold in kegs larger than the 8-liter size.
Finally
Although not all of these changes can affect you personally, you can give them your tick and # statements:
- Multinational companies must now be protected and no longer transfer profits to countries with lower taxation (they do this by loading local debt transactions).
- Online hotel reservations on sites outside of Australia will now be taxed at the same rate as Australian companies, which ends the disparity that currently occurs between international and local suppliers.
- Companies that are currently pushing boundaries, and the use of tax incentives for research and development will be discontinued. This will provide funding for truly innovative spending.
- $ 1.3 billion is planned. USA to support Australia as a global leader. in medical technology, biotechnology and pharmaceuticals.
- The ATO will focus on the Black Market Economy with a large number of inspections, mobile strike teams, etc., and the Economy Hotline for the public to report suspicious activity of enterprises, trying to avoid paying the tax.
If you have any questions, your mortgage broker is always ready to help.
