Blog

The Federal Government has now handed down the 2018 Budget.  Whilst there have been a number of changes, we have given you a summary of the wins and losses for business owners, along with our thoughts in the below video (12 min view time).

• Small Business  ($10M or under turnover)
  • Extension of $20k asset write off.  Will revert back to $1k from 1 July 2019.
  • Contractor reporting system to be extended to Road Freight Transport, Security Providers and Computer System Design Industries from 1 July 2019.
• Personal Tax Rates
  • New Low and Middle Income Tax Offset to provide a non refundable offset of up to $530 per annum

• Medicare Levy
  • Lower threshold is increasing to $21,980 for singles and $37,089 for families.
  • Medicare Levy rate will remain at 2% in the 2020 Financial Year (previously proposed 2.5%).

• Superannuation
  • 3 Year Audit Cycle for SMSF
    • SMSF’s with three years on clean Audit History will be eligible for three-yearly audits from 2020
  • SMSF Members
    • From 1 July 2019, ability to have six members in a SMSF
  • Funds that do not receive contributions in 13 months may lose insurance cover
• Rental Properties
  • No longer able to claim interest and maintenance costs on vacant land intended to be used as an investment
• ATO
  • Investing $130M in Audit activity from 1 July 2018

If you would like further clarification on the above, please feel free to get in touch!