Personal Income Tax Changes

The Government will introduce a seven-year, three-step, Personal Income Tax Plan as follows:

  1. A small additional tax offset of up to $530 that you will receive when you lodge your 2019 Income Tax Return (and future tax returns). Taxpayers with taxable incomes under $125,334 will be eligible.
  2. From 1 July 2018, the Government will extend the 32.5% personal income tax bracket from $87,000 to $90,000.
  3. From 1 July 2022, should the current Liberal Government control the parliament, the Government will:
    1. extend the 19% personal income tax bracket from $37,000 to $41,000; and
    2. extend the 32.5% personal income tax bracket from $97,000 to $120,000; and
    3. increase the Low Income Tax Offset from $445 to $645.

Business Income Tax Changes

For the majority of businesses, there will be no changes that affect them. Changes are as follows:

  • The Small Business $20,000 immediate write-off will remain until at least 30 Jun 2019;
  • The Research and Development Tax Incentives for companies with more than $20m turnover will be reduced

“Black Economy” Changes

In an effort to minimise the businesses not declaring cash payment for income tax, the Government are making a series of changes:

  • From 1 July 2018, contractor payment reporting is extended to security and investigation services, road freight transport and computer system design.
  • From 1 July 2019, businesses will not be able to claim a deduction for wages where they have not withheld PAYG, and should have withheld PAYG.
  • From 1 July 2019, businesses will not be able to claim a deduction for contractor payments where they have not been supplied an ABN and the business has not withheld PAYG.
  • From 1 July 2019, transactions for goods and services over $10,000 must be paid by electronic payment system or cheque.

Superannuation Changes

A number of positive changes to superannuation will assist people to further save for their retirement:

  • From 1 July 2019, there will be no requirement for people aged 65-74 with superannuation balances below $300,000 to meet the work test requirements in order to make a voluntary contribution.
  • From 1 July 2019, some Self Managed Superannuation Funds (SMSFs) will only require an audit every three years compared to the annual requirement; and the maximum number of members will be increased from four to six.
  • The ATO will strengthen the superannuation consolidation regime by capping fees and insurances for low superannuation balances, and data matching will reunite lost superannuation with their owners.

Western Sydney Infrastructure

The Budget announced $50m to jointly fund a business case with the NSW Government for a station site for the proposed Western Sydney North-South rail line. There is also an allocation of $5,000,000 for a Visitor Centre during construction at Western Sydney Airport.