Income tax cuts for low and middle income workers, aged care support services and infrastructure funding were some of the key proposals in this year’s Federal Budget.
For super, the budget announcement included measures to remove compulsory default insurance from the super accounts of young people and reuniting many Australians with their lost or inactive super accounts.
The focus for retirees was on helping pensioner and self-funded retirees to boost their income. Measures related to this include the expansion of the Pension Work Scheme and allowing more people to access Centrelink’s Pension Loans (home equity release) Scheme.
The Budget didn’t contain any major changes to the way super is taxed or any changes to the concessional or non-concessional cap limits on voluntary contributions.
In the business space, small businesses with turnover of up to $10 million will be able to immediately write-off expenditure up to $20,000 for a further year to 30 June 2019.
The Government reaffirmed its previous commitment to introduce a turnover based phase-in of the reduced company tax rate of 27.5 per cent until 2024/25 when a 27 per cent rate will apply to all companies, followed by a further reduction of 1 per cent pa for all companies until the company tax rate reaches 25 per cent by 2026/27. Also reaffirmed was its commitment of $75 billion for infrastructure over a 10-year period.
This Budget announces the direction of $25 billion towards major infrastructure projects including Melbourne Airport rail, Melbourne North-East Link, Queensland’s Bruce Highway and Brisbane-Gold Coast M1 upgrades, Perth’s Metronet rail and Adelaide North-South corridor.
More detail on the Budget and super is available at australiansuper.com/Federal Budget2018