Tax cuts for everybody eventually… The most friendly budget?
Leading his third Federal Budget, Treasurer Scott Morrison has focussed on tax cut “affordability” and delivering a “responsible” budget that will encourage consumer spending and economic growth, without damaging the reduction of the national debt and drive to surplus. The winners in the 2018 budget are taxpayers on lower income tax brackets, older Australians and small business.
In keeping with previous years, this year’s budget delivered few surprises. But the question remains – has Treasurer Scott Morrison done enough to convince the electorate that the Coalition Government should be returned to power? It is a fine balancing act for the Government as it endeavours to appease the electorate – which has not seen an increase in real wages for several years amidst rising household costs – while, at the same time, needing to maintain its position of being fiscally responsible and getting the economy back into surplus by 2019-20.
Briefly, some of the key budget announcements include:
- Income tax cuts – tax relief to reward working Australians, delivered in three stages over seven years.
- Business – extending the date for the small business instant asset write-off; an overhaul of the R&D tax incentives; a crackdown on multi-national corporations including businesses in the digital economy; and further work on the black economy.
- Superannuation – new rules for superannuation funds to limit fees; and the provision of services that are not required.
- Aged care and older Australians – opening up of the pension loan scheme to all older Australians; an ability for pensioners to earn more without reducing their pension payments; an increased number of home care packages and a range of policies to help older Australians live longer and healthier.
- Infrastructure – massive spending on infrastructure and in particular Australian Public Infrastructure.
Once again the Bentleys Network partners, from all over Australia, have drawn upon their considerable tax and business advisory experience to bring you their expert views on the 2018 Federal Budget.
In terms of economic policy, how does the Treasurer’s 2018 budget rate? How will your business be affected and how will you be affected personally?
We welcome your comments on Budget 2018.
#Budget2018 at a glance
What does this budget mean to you?
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Dean Steer
Partner
Bentleys Queensland
David Spurritt
Partner
Bentleys South Australia
Colin Chirgwin
Director
Bentleys New South Wales
Darren Lee
Director, Tax
Bentleys New South Wales