Reduce tax rate from 32.5% to 30%
Increase top threshold of the 30% tax bracket from $120,000 to $200,000
Removal of the 37% tax bracket
Instant Asset Tax Write-off
Small business entities (i.e. those with aggregated annual turnover of less than $10 million) will be able to immediately deduct purchases of eligible assets costing less than $30,000 that are first used, or installed ready for use, from 2 April 2019 to 30 June 2020.
They will continue to have access to the simplified depreciation rules.
Medium sized businesses
Businesses with aggregated annual turnover between $10 million and $50 million will also be able to immediately deduct purchases of eligible assets costing less than $30,000 that are first used, or installed ready for use from 2 April 2019 to 30 June 2020.
The purchase date is critical. The concession will only apply to assets purchased after 2 April 2019 by medium sized business (as they have previously not had access to the instant asset write-off) up to 30 June 2020.
Tax Integrity — Increasing Engagement And On-time Payment Of Tax And Superannuation Liabilities
The Government will provide $42.1 million over four years to the ATO to increase activities to recover unpaid tax and superannuation liabilities.
These activities will focus on larger businesses and high wealth individuals to ensure on-time payment of their tax and superannuation liabilities.
The measure will not extend to small businesses.
Improving Flexibility For Older Australians To Contribute To Super
The Government will allow voluntary superannuation contributions (both concessional (deductible) and non-concessional) to be made by those aged 65 and 66 without meeting the work test from 1 July 2020. Aligning the work test with the eligibility age for the Age Pension which is scheduled to reach age 67 from 1 July 2023.
People aged 65 and 66 will also be able to make up to three years of non-concessional contributions under the bring forward rule, currently limited to $100,000 per annum ($300,000 under the bring-forward rule)..
The Government also announced that people up to and including age 74 will be able to receive spouse contributions, currently those aged 70 and over cannot receive spouse contributions. Spouse contributions are contributions to your spouse’s super, which may entitle you to a tax offset if your spouse meets the requirements.
Protecting Your Super Package — Putting Members’ Interests First
The Government will delay the start date for ensuring insurance within superannuation is only offered on an opt-in basis for accounts with balances of less than $6,000 and new accounts belonging to members under the age of 25 years to 1 October 2019.
These changes (currently before Parliament) will protect the retirement savings of young people and those with low balances by ensuring their superannuation is not unnecessarily eroded by premiums on insurance policies they do not need or are not aware of.
The changes will also reduce the incidence of duplicated cover so that individuals are not paying for multiple insurance policies, which they may not be able to claim on. These changes will not prevent anyone who wants insurance from being able to obtain it — low balance and young members will still be able to opt-in to insurance cover within superannuation.
Energy Assistance Payment
The Government will provide a one-off payment of $75 for singles and $62.50 for each member of an eligible couple ($125/couple) who receive a qualifying payment on 2 April 2019 to provide relief from high energy costs. Qualifying payments include the Age Pension, Carer Payment, Disability Support Pension, Parenting Payment Single, and Veterans’ pensions and payments.
Additional Residential care places and Home Care Packages/Supplements
The Government proposes the following:
13,500 additional residential care places
10,000 home care packages across the four package levels over 5 years from 2018-19
Increase to the dementia and veterans’ home care supplements
The Government has announced a National Plan to Respond to the Abuse of Older Australians. The Plan includes $18 million to create a new National Hotline (1800 ELDERHelp or 1800 353 374) and conduct trials of frontline services for victims of abuse. The Government is also contributing $1.5 million towards developing a Serious Incident Response Scheme.
The Government is establishing the independent Aged Care Quality and Safety Commission from 1 January 2019.