Australia voted for business as usual! With the re-election of the Coalition Government, the Australian Labor Party's ambitious tax plan is now off the table.
The election campaign focussed on Labor plans, with very little policy from the Coalition. We have summarised the key tax changes that are expected to be introduced by the incoming Government
Tax cut for low to middle income earners
- From 1 July 2018, taxpayers earning up to $126,000 can expect a tax cut, with the maximum amount being $1,080. This tax cut is delivered by an additional tax offset that is calculated when you lodge your tax return. Tip: Lodge your next tax return early to get the refund sooner!
- Further personal tax cuts are expected from 1 July 2022, including removal of the 37% tax bracket from 2024. The Government had previously legislated some of these cuts, but they will be required to introduce new legislation for the increased cut.
Increase to SMSF member limit
- It is expected that the Government will again attempt to increase the allowable number of members in self-managed super funds (SMSF’s) from 4 to 6
First home loan deposit scheme
- The Government announced a new scheme to allow first home buyers access to loans of up to 95% loan-to-value ratio’s. The scheme will commence from 1 January 2020, and will apply to first home buyers earning up to $125,000 annually, or $200,000 for couples.
Talk to our friendly team now about any changes that may affect you. Contact us on +61 7 3378 7399 or via email at info@gillmckerrow.com.au
