WORKING TOGETHER FOR PROFIT




Budget 2018 : What's in it for you?

19-Jun-2018

In the last Budget before the next Federal election, the Treasurer delivered an election Budget with enough sweeteners for everyone including businesses, income tax relief for individuals, measures to boost superannuation, and help for older Australians.

So what’s in it for you?

Businesses

Small businesses will benefit from the Government extending the $20,000 instant asset write-off for a further 12 months to 30 June 2019. This applies to businesses with aggregated annual turnover less than $10 million.

Assets valued at $20,000 or more can continue to be placed into the general small business pool and depreciated at 15% in the first income year and 30% each income year thereafter. The pool can also be immediately deducted if the balance is less than $20,000 over this period (including existing pools).

Personal Income tax relief

The Government has promised to deliver targeted tax relief of up to $530 to middle and lower income earners through a new tax offset for the 2018-19, 2019-20, 2020-21 and 2021-22 income years. This offset will be in addition to the current low-income tax offset.

In addition to this relief, the Government will increase the top threshold of the 32.5% tax bracket to $90,000 from 1 July 2018. In a feat of forward planning, from 2022-23 the top threshold of the 19% tax bracket will be increased to $41,000 with the low-income tax offset to be increased to $645.

ATO closely examines work-related car expenses

The ATO is concerned about taxpayers making mistakes or deliberately lodging false claims for work-related car expenses, and has announced it will be closely examining claims for these expenses in 2018 tax returns. Last year, around 3.75 million people made a work-related car expense claim, totalling about $8.8 billion.

The best way for to avoid mistakes is to make sure you follow “the three golden rules”, only making a car claim if:

you paid for the expense yourself and you weren’t reimbursed;

it’s directly related to earning your income – in other words, your employer required you to make the trips as part of your job; and

You have a record to support your claim.

Residential rental property travel expense deduction changes

Recent changes to Australian tax law mean that individuals, self-managed superannuation funds (SMSFs) and “private” trusts and partnerships can longer claim tax deductions for non-business travel costs related to their residential rental properties. Such costs also cannot form part of the cost base or reduced cost base of a CGT asset.

Want to find out more?

Do you want to find out more about how this Budget affects you and your future?

We will help you find the answers and plan for your future.

If you have questions, please feel free to contact us.



Ledger Rutledge & Walker Pty Ltd © 2016

ABN 58 502 160 395 ACN 092 853 891

Australian Financial Services Limited Licence 484884

Liability limited by a scheme approved under Professional Standards Legislation 

Home | About Us | Services | News | Resources | Contact Us | Privacy Policy | Terms Of Use