NTAA’s 2018 Federal Budget

2018 Federal Budget  includes several changes:

Personal Income Tax Plan

  • Targeted tax relief for low and middle income earners that
  • Protecting middle income earners by changing tax income brackets
  • Ensuring that Australians pay less tax by making the system less complicated
  • Changes to Medicare levy low income thresholds

Those changes will have huge effect on your payroll starting from the year 2019. Please ensure to that your tax tables are up to date

Changes effecting business taxpayers

  • $20,000 write-off for small businesses extended until 30 June 2019
  • Changes to deduct-ability for PAYG withholding
  • An Economy-wide cash payment limit
  • Expansion of the contractor payment reporting system
  • CGT concession and partnership income

Superannuation related changes

  • Work test and voluntary contribution
  • Three year audit cycle
  • Increasing the maximum number of members in an SMSF and small APRA fund
  • Preventing inadvertent concessional cap breaches by certain employees
  • Deduction for personal contributions
  • Minor adjustments to Treasury portfolio legislation
  • Changes to passive fees, exit fees inactive superannuation accounts
  • Changes to insurance in superannuation

Changes effecting companies

  • Changes to Division 7A
  • Reforms to prevent illegal phoenixing
  • Research and Development tax incentive

Changes affecting trusts

  • Changes to taxation of testamentary trusts
  • Anti-avoidance rules extension for circular trust distribution

Other income tax changes effecting:

  • Deductions for vacant land
  • taxation of income for an individual’s fame or image

GST changes

  • extended GST for offshore sellers of hotel accommodation

Other budget announcements

  • Removing the CGT discounts at trust level for Managed Investment Trust
  • Compliance activities targeting individuals and their tax agents
  • Income tax exemption for certain Veteran Payments
  • The package of measures that will effect concessions for foreign investors

If you want to know more about budget Please click here to download your pdf.

Anna Begic

If anybody likes playing with a numbers, that is me. I am a University graduate with Bachelor Degree with Major in Accounting and Major in Finance. Last four years I worked as a bookkeeper, I have achieved senior status, Certified partner with Xero, Reckon One certification and currently working on MYOB certification.
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