FEDERAL BUDGET 2018
The focus of this year’s budget was on reining in spending, cutting taxes for middle Australia and small to medium sized enterprises, and giving older Australians a bit of love.
Living within our means.
"The Government revealed a seven-year personal income tax plan for “lower, fairer and simpler taxes” with relief for low and middle income earners, starting 1 July 2018. The measures will also tackle bracket creep." (BT Financial Group).
On 8 May 2018, the Government delivered the 2018-19 Federal Budget, and it would be reasonable to say that this Budget starts to lay a foundation for the next Federal election.
The focus of the budget was building a stronger economy by creating jobs and guaranteeing essential services. As most households have had to tighten their budgets over the past few years, the Treasurer has announced that the Government must also live within its means. He said the Government has made real progress in getting the budget back on track and that it has stayed on track for a surplus for six successive budget updates.
From a pure financial planning and wealth perspective, the positive news from this year’s Budget is that the changes are minimal in number compared to prior years, and largely positive in nature. With changes to personal taxation thresholds and tax offsets from 1 July 2018 over a seven year period, measures to reduce possible erosion of super balances, particularly for low balance accounts, and allowing Age Pensioners to earn more before their pension is reduced, there is something for nearly everyone in this Budget.
As is always the case, these measures will need to pass through the legislative process before they become law, and may change during that process.
Our team would be happy to discuss any questions you have, please email info@SaltFinancialGroup.com.au or contact our office at +61 3 9088 4777.