2018/19 Federal Budget. Some things you need to know

Review Plan Reframe Revitalise

Key Dates:

June 21

  • Lodge and pay May 2018 monthly activity statements

June 25

  • Lodge 2018 Fringe Benefits Tax annual return by tax agents

June 30

  • Super Guarantee contributions must be paid by date to qualify for a tax deduction for the 2017/2018 financial tax year

July 14

  • Payers must issue PAYG withholding summaries to employees

July 28

  • Final date for lodgement and payment of April – June BAS

August 14

  • Final date for lodgement of PAYG withholding summaries to employees

August 28

  • Final date for eligible monthly GST reporters to elect to report GST annually

The Key Measures

The centre piece of the budget is a seven year plan to reform the personal tax system.

Modest tax relief is proposed for low and middle income tax payers with a new tax offset. The plan is to tackle bracket creep by abolishing the 37% tax bracket.

The budget allocates more spending on:

  • Infrastructure ($25 billion)
  • Superannuation reforms
  • Black Economy & Attack on Cash used
  • Small Business and
  • Smaller initiatives on health, welfare and education

My thoughts on the budget are of course it’s an election underwritten budget but I feel our Treasurer has made the right choices in view of our relatively strongly performing economy.

Tax reform and simplification is needed to encourage business and individuals to work and enjoy more of the fruits of their labour and effort.

Key Points you should know

  • $20,000 instant asset write-off for small business extended to 30 June 2019
  • 32.5% threshold from $87k to $90k
  • $17.7 mil Expansion of the Entrepreneurship Facilitators Prgm
  • Pensioner extra $1300 work bonus
  • Abolish super exit fees
  • Extra $1.4bn for listings on PBS
  • Cash payments over $10k banned

Winners

  • Taxpayers
  • Pensioners
  • Super Payers
  • Spies
  • Small Business
  • Medical Bills

Losers

  • Cash Payers
  • Welfare Crims
  • Foreign Doctors
  • ABC
  • Vacant Land Owner
  • Foreign Aid
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Andre Christian
Andre Christian is a Registered Company Auditor having gained his initial training at Ernst & Young before becoming Audit Manager at Grant Thornton National firm, Thompson Douglas & Co Chartered Accountants. His passion for business improvement, more efficient trading structures and preparing business valuations for both clients and expert court reports led him to form his own practice Christian Fox Accountants. He is a long and proud resident of the Macarthur region with a young family Having grown up in Long Point, Macquarie Fields Scenic Nature Reserve. He took over the previous offices of Arthur Young Chartered Accountants where they were based in Ingleburn. A current Director of a local Not for Profit Organisation assisting community health issues in Macarthur and an active local Rotarian. Proud to be involved with the Smarter Macarthur Business Magazine as a founding contributor to Smarter Advice B2B.

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