Special Pherrus Federal Budget 2018-19 Review

This year’s Budget highlights a mix of some 37 measures. What are the need to knows?

Here are the Big Ones

• Personal Income Tax Relief – there will be an immediate offset for low to middle income earners. Further relief is planned over 7 years
• The company tax rate is still pegged to be reduced to 25% by 2020.
• No Medicare Levy increase, it will stay at its current 2%.
• Infrastructure spending will be huge at a whopping $24 Billion
• Expect Superannuation changes. These Which will impact, Self Managed Superfunds, Fees, Inactive accounts and Insurance. Although no major news on this yet
• The Black Economy will be targeted. The Government is going to funnel a lot of their investment into building up the ATO.
• Small business $20,000 write off for Assets extended to 30 June 2019
• From 1^st of July 2019, the government will allow the ATO to impose a tax on Family Trust distributions at a rate equal to the top personal tax rate.
• Small Business CGT Concessions will have an integrity measure in place, especially for businesses with annual turnover less than $2Million.

What will the Personal Income Tax Adjustments look like?

CURRENT			PROJECTED
	Rate	% of taxpayers in this bracket		Rate	% of taxpayers in this bracket
$0 – $18,200	Nil	22%	$0 – $18,200	Nil	21%
$18,201 – $37,000	19%		$18,201 – $41,000	19%
$37,001 – $87,000	32.5%	53%	$41,001 – $200,000	32.5%	73%
$87,001 – $180,000	37%	20%	$200,000 +	45%	6%
$180,000 +	45%	5%