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Budget 2018: The Details At A Glance

Budget 2018: The Details At A Glance 

Treasurer Scott Morrison is riding record job growth, company tax revenue and high commodity prices to support his $140 billion plan to put hundreds of dollars a year back in taxpayers’ pockets.

But what else? Let’s have a quick glance at what’s what.

Personal tax cuts: Taxpayers who earn more than $37,000 will pay up to $530 less tax a year.  Those who earn $37,000 or less will get a tax cut of up to $200. This is a seven-year package. The budget forecasts 4.4 million people who earn between $48,000 and $90,000 will receive the full $530 cut in 2018-19.

Small Business: The popular small business $20,000 instant asset write-off  for businesses with a turnover of under $10 million has been extended for a third year, to June 30, 2019.

Youth allowance: The combined parental income test will rise from $150,000 a year to $160,000. It will then increase by $10,000 for every sibling.

Child care: The Child Care Subsidy will be paid directly to child care providers to reduce fees for eligible families – this will replace the Child Care Benefit and Child Care Rebate.

Superannuation: A 3 per cent annual cap on fees for accounts with less than $6,000 will be applied.  Exit fees on all superannuation accounts will be banned.  In addition, all inactive super accounts with balances less than $6,000 will be transferred to the Australian Taxation Office, which will then “proactively” reunite these inactive accounts.

Aged Care: Increase in the number of home care places by 14,000 over four years at a cost of $1.6 billion.

Seniors’ loans: This will open up to all seniors – from full pensioners to self-funded retirees. They will be able to borrow up to $17,800 per couple against an asset without affecting their pension eligibility.

Social welfare: The government will claw back $299.3 million by 2021-22 as the debt recovery effort ramps up.

Medicine: The government will save $302.6 million by 2021-22 by encouraging greater use of generic medicines.

Medicare levy: As announced in the lead-up to the budget, the 0.5 per cent increase has been scrapped.

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