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Federal Budget

Federal Budget. This is general advice only. This presentation was prepared by Bridges Financial Services Pty Limited (‘Bridges’). ABN 660 003 474 977. ASX Participant. AFSL 240837.

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Federal Budget

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  1. Federal Budget

  2. This is general advice only This presentation was prepared by Bridges Financial Services Pty Limited (‘Bridges’). ABN 660 003 474 977. ASX Participant. AFSL 240837. This is general advice only and has been prepared without taking into account your particular objectives, financial circumstances and needs. Before making any decision based on this presentation, you should assess your own circumstances or consult a financial planner. The examples used are for illustrative purposes only. A Product Disclosure Statement(s) (PDS) for the product(s) outlined in this presentation is available from your financial adviser which you should consider before deciding whether to acquire this product(s). You may also contact our Client Advisory Services on 1800 221 151 (free call) between Monday to Friday 9.00am to 6.00pm (Sydney time). To the extent permitted by law, Bridges, its officers, employees, agents, consultants, advisers and representatives are not liable for any loss or damage as a result of any reliance placed on the contents of this presentation. In referring members to Bridges, <Name> does not accept responsibility for any acts, omissions or advice of Bridges and its authorised representatives. Bridges is part of the IOOF group.

  3. Federal Budget

  4. Let’s keep in mind • Budget proposals are not immediately law • Some may have effect from Budget night, but still require the passage of legislation to be enacted • Not many parliamentary sitting days before May • Federal election will need to be called some time shortly • Whatever has not been passed is shelved • Would require re-introduction by new Government

  5. Super Federal Budget overview Taxation Social security

  6. Super

  7. Improving flexibility for older Australians • Increasing the ability for those over age 65 to make contributions • ‘Work test’ requirement to apply from age 67 • Currently applies if age 65 or over at the time the contribution is made • Non-concessional contribution bring-forward trigger extended to age 67 • 66 or under on 1 July • Currently 64 or under on 1 July • Spouse contributions can be made to age 74 • Spouse work test requirements expected to remain • Same caps / rules apply

  8. Reducing red tape for small funds • Small fund tax compliance assistance • Remove requirements for funds fully in retirement phase to obtain actuarial certificate • Unexpected impact from transfer balance cap changes • Allow funds flexibility in determining tax free earnings where moving between accumulation and retirement phases

  9. Taxation

  10. Personal income tax cuts • Further changes to the ‘ten year personal income tax plan’ • Low and middle income tax offset increasing immediately • Base rate from $200 to $255 • Maximum from $530 to $1,080 • Taper rates adjusted to phase in and out at broadly similar points • Offset is only temporary • Ceases to operate in 2022 financial year

  11. Personal income tax cuts

  12. Personal income tax cuts • Future personal tax changes • From 1 July 2022, low income tax offset increases to $700 • Slight change to taper rate • Still phases out at $66,667 • From 1 July 2024, 32.5% marginal rate reduced to 30% • These are in addition to already legislated changes • From 1 July 2022 the 19% marginal rate increases from $41,000 to $45,000 • From 1 July 2024 the 37% marginal rate is abolished

  13. Personal income tax cuts

  14. Small business instant asset write-off • Extending the temporary tax relief measure • From 2 April 2019 • Instant asset write-off threshold increased to $30,000 • Applies on a per-asset basis • Available to businesses with turnover less than $50m • Must be first used / installed for use between Budget night and 30 June 2020

  15. Social Security

  16. Energy assistance payment • One off payment • $75 singles • $125 couples • Welfare recipients in Australia who were receiving payment on 2 April 2019 • Pensioners (including Age Pension, Disability Pension and Service Pensions) • Carers • Single parents • Newstart recipients • Unsure when this will be paid

  17. Aged care • Increased funding • More scrutiny of aged care providers • Improved payments administration

  18. Questions ?

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