The Hon Scott Morrison MP handed down his third Federal Budget on the 8th of May 2018.
Pleasingly, superannuation has again largely been left alone. The Budget instead focused on a seven year tax plan. Low to middle income earners with an income up to $90,000 will receive a $530 tax offset from 1 July 2018. The offset will start to reduce and will cut out when income reaches $125,333.
Personal marginal tax rates will gradually alter to the following:
The Budget is clearly designed as a sweetener for the next Federal Election which could be held at any time, barring a double dissolution, from 4 August 2018. There is something for most people in the 2018 Budget, however for some, they may take a little while before they flow through.
Please note, all the announcements still need to pass through Parliament; until then they can be viewed as merely a statement of intent. In addition, the devil is always in the detail, and the details aren’t yet fully known. (more…)