Changes for business
The Budget includes funding for new major infrastructure projects around the country including for roads and rail.
The lion’s share will go to Victoria to fund a range of projects, the largest being the much awaited rail line to Melbourne airport. Those in the construction sector will benefit from new opportunities created from these projects over the next few years.
Small businesses with a turnover of less than $10 million will benefit from the extension of the $20,000 instant asset write off which now applies for a further 12 months to 30 June 2019.
There will be new reforms to address situations where companies deliberately go into liquidation to avoid paying debts, leaving creditors behind.
Employers who hire workers over age 50 may qualify for financial incentives, and there will be funding to upskill older workers who are at risk of being made redundant.
From 1 July 2019 it is proposed that cash payments for good and services will be capped at $10,000 to reduce the ability of black economy operators using cash to avoid their tax and reporting obligations.
Changes for individuals
We’ll see tax cuts for low and middle income earners, and from the 2019 financial year the 37% marginal tax rate will apply at a higher threshold to address bracket creep (up from $87,000 to $90,000).
There will be initiatives to help people consolidate their superannuation accounts, and younger workers will need to opt in to take life insurance cover through their superfund.
See 2018/19 Federal Budget for full details.
Contact the team at Cbus with any questions on 1300 361 784 Monday to Friday from 8am-8pm.