The 2018 Federal Budget and what it means for you
The 2018 Budget from Treasurer Scott Morrison has been announced and we've been through the Budget and summarised the key areas for both 'The Winners' and 'The Losers'.
Average income earners – 94 per cent of Australians will be on a tax rate of 32.5 per cent or less in 2024, with those on the average wage of $84,600 saving $530 a year.
Seniors – will be able to keep more of what they earn on the side, access equity in their homes for retirement and face a shorter waiting list if they are seeking care at home.
Small business – will get an injection of life from a corporate tax cut and a year-long extension of the instant asset write-off.
The sick – a new public hospitals agreement will deliver an extra $30 billion to 2024, while medicines to treat breast cancer and multiple sclerosis will be made cheaper.
Schools – set to benefit from an extra $24.5 billion under the so-called Gonski 2.0 needs-based funding package.
States – 10-year $75 billion infrastructure package for projects in various states and territories and a $1 billion Urban Congestion Fund to improve traffic flow and safety at state level.
High income earners – not much tax relief for those earning over $125,000 until 2024/25 when the 37 per cent tax bracket is abolished.
Banking and financial sector – major bank levy to continue, executive accountability regime to start on July 1 and stronger penalties and enforcement against misconduct in the sector.
Multi-nationals – tax changes to remove loopholes that gives foreign companies a tax break over Australian companies and allow them to fiddle with debt to reduce their tax liabilities.
Digital giants – Discussion paper to come that will explore options for taxing digital business in Australia.
Preschoolers – The budget failed to guarantee funding for kindy and preschool beyond the next 12 months. “Mums and dads need certainty,” The Parenthood’s Alys Gagnon said. “There’s not much more that worries a parent than their child’s education and right out of the gate, parents have no guarantees that their kids will be able to access affordable, quality pre-school.”
Visa overstayers – $122 million to increase border force capability at nine domestic and international airports.
Tax cheats – Black Economy Taskforce recommendations to bring in $5.3 billion over the next four years by targeting sectors that under report income.
If you have any questions or for a more in-depth budget overview, please contact our office on (02) 8324 2341 or by email.