Treasurer Scott Morrison handed down the 2018-19 budget on the 8th May; with a few surprises joining confirmed expectations.
Being labelled the "Breadwinners" Budget, reward for work seems to be the dominant theme. The seven year personal income tax plan initially targets low to middle income earners before making significant changes to the tax brackets.
Innovation continues to be the Government's mantra with the medical industry a clear winner. The Government has dedicated a total of $1.3 billion to fund genomic research projects investigating medicines that can be tailored to individual patients, clinical trials of new drugs and development of new medical technologies.
As you would expect from an election budget, there is not a lot of bad news or serious cuts. The black economy however features consistently with a multi-agency task force and all manner of programs including the imposition of a limit of $10,000 on cash payments.
There are also a number of tax changes to close loopholes and while not presented in the budget, the Treasurer has flagged the release of a discussion paper that will explore options for taxing digital business in Australia. There will be more to come – just not this year.
- $20k accelerated depreciation extended until 30 June 2019
- Research & development incentive shake-up
- Black economy – new initiatives and more industries rolled into the taxable payments system
- Introduction of a 3-year cycle for SMSF audits for compliant funds
- Seven year personal tax cut plan
- Major innovation funding
Download the Budget Summary
The material contained in the Budget 2018-19 summary should be used as a guide in conjunction with professional expertise and judgement. Should you have any questions in relation to this information, we encourage you to contact our office to discuss with your Accountant.