Last night saw the end to predictions, speculation and to quote some commentators, “the optics and politics” of the last month.
Treasurer Scott Morrison has delivered the Federal Budget for 2018-19, which is very likely to be the last one before the next Federal election. And, the Thomson Reuters Tax News Team has all the tax measures covered in our comprehensive Federal Budget Report.
Whilst “Big Ticket” tax reform misses out again, the “stronger economy, more jobs” is the running theme for this year. The Government is confident that through this budget we’ll see a lowering of the deficit and return of the economy to a modest balance of $2.2 billion in 2019-20.
And as promised, there was something for everyone – and all of this has been presented as tinder to ignite the economy. Here are a few highlights:
- Personal income tax cuts for low and middle-income earners will come into play to help increase spending, through the Treasury Laws Amendment (Personal Income Tax Plan) Bill 2018, introduced today.
- Targeted funding for sectors to encourage job growth and a tightening of the criteria for the R&D tax incentive and lowering of the cap.
- Tax Compliance – additional measures to close tax evasion loopholes and increase tax revenue streams by reforms to the Digital Economy, further crackdowns on the Black Economy with an increase in the funding for the Black Economy Taskforce.
- Small business has been provided for in a range of measures, including the hoped-for extension of instant asset tax write off threshold for 12 months and assistance to implement the STP system.
The “realpolitik” of the budget will take some time to unravel of course, and while the media is awash with budget sound bites and quick guides, the Thomson Reuters Federal Budget Report gives detailed reporting and insights for you and your clients.
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