Last night (8 May 2018) the Treasurer, Mr Scott Morrison, handed down the 2018-19 Federal Budget, being his third Budget and the current Coalition Government’s second since the last (2016) Federal Election.
A key component of the Budget is delivering tax cuts to low and middle income earners, which will be phased in from the 2019 year.
There is also a strong focus on greater integrity in the tax system through the Black Economy measures and other more targeted and specific amendments.
Small to Medium Businesses
Small to medium businesses will benefit from the extension of the $20,000 immediate asset write-off, but may be impacted by no Small Business Concessions for assignment of Partnership Rights.
Corporate & International Businesses
R&D Tax Incentive
The Budget includes a range of changes to the R&D Tax Incentive which will take effect from 1 July 2018.
From 1 July 2019, SMSFs with a history of good record-keeping and compliance (with clear audit reports and annual tax returns lodged on time) for three consecutive years, will be eligible for a three-year audit cycle rather than the current annual audit requirement.