Much of the discussion in the lead-up to May 8’s federal Budget focused on the likelihood of personal tax cuts.
In his third Budget, Treasurer Scott Morrison didn’t disappoint, unveiling a new temporary tax offset and significant long-term movements in the marginal tax rates.
Coupled with the cancellation of the planned Medicare levy increase, these changes will see clients keep more of their taxable income in their pocket in future tax years.
Superannuation didn’t feel the glare of the spotlight as strongly as it has in previous Budgets. That said, a collection of smaller changes will still provide opportunities for clients, particularly those with Self Managed Super Funds.
Clients with small superannuation accounts should see their balances better protected although they will need to be proactive in order to keep any insurance they hold in their super fund.
A handful of minor changes to social security, estate planning and aged care were also announced. Each will affect a small section of financial planning clients, some in significant ways.
The proposals announced in the 2018/19 federal Budget are, on the whole, good news for financial planners and clients. They present opportunities to utilise a bit of extra cash-flow to help clients achieve their goals.
The information contained in this publication is based on the understanding KeyInvest (ABN 74 087 649 474 AFSL No. 240667) has of the relevant Australian legislation as at the date shown in this publication.
The information contained in this publication is of a general nature only and is intended for use by financial advisers and other licensed professionals only. It must not be handed to clients for their keeping nor can any copies of sections of this publication be given to clients. KeyInvest is not a registered tax agent under the Tax Agent Services Act 2009. We recommend that your client be referred to their registered tax agent or legal adviser prior to implementing any recommendations that you may make based on the information contained in this publication.