There has been a lot of chatter about the new federal budget and tax cuts coming into effect. Whether you’re a small business owner, worker or parent, no doubt you have awaited the announcements with a pinch of trepidation. How to the new cuts impact your upcoming tax return? Luckily, our team at Online Tax Return have compiled a simple rundown of the changes to the federal budget, and their impact on Australian tax payers for 2018 and beyond.
Federal Budget Summary
No significant changes were made that will impact your upcoming individual Australian tax return for the 2017-2018 financial year.
Most of the focus of this federal budget seems to be on infrastructure allocation, however many have pointed out that the projects accounted for were already in the pipeline.
Future Financial Years
For the majority of Australians, the federal budget there will be new minor tax cuts for the 2019 financial year. As of July 1, Australian tax payers earning up to $37,000 a year will get up to $200 back in their tax return, while those earning up to $90,000 will get a maximum of $530 back.
However, from 1 July 2018, the Australian Taxation Office will see an increase to funding to pursue Australian tax payers who over-claim deductions or under-report income. This includes claims made on uniforms, cars and other work-related expenses. It will also further empower the office to pursue unpaid debts.
Source: Budget Paper No 2, p 39.
As a university student, you can still strive to boost your tax return. By engaging Online Tax Return, our tax expertise will make the most of tax cuts and deductions available to your situation.
Even if you are primarily on Centrelink payments, you are still required to fulfil an annual tax return. If you need to catch up or aren’t sure where to start – contact the experts at Online Tax Return today.
First Home Buyers
There are no major 2018 federal budget measures working to address housing affordability, outside of a small divesting scheme for areas of Brisbane.
Seniors and Pensioners
Senior Australians need to update their tax return habits as they age. With changing regulations and circumstances surrounding your Australian tax obligations, it’s important to stay up to date. Contact the tax professionals at Online Tax Return today for a tax check-up.
Thankfully, the $20,000 instant tax write-off is extended for small businesses for the 2019 financial year. This still applies only to businesses with an annual turnover of up to $10 million.
However, businesses that operate cash-only business transactions have a spotlight on them. This federal budget has highlighted the risky tax implications of this practice, like evasion or laundering. ‘
As such, large cash payments above $10,000 will be banned as of 1 July 2019. These payments will then need to be made through electronic transfer or cheque.
Need Help for your next Tax Return?
Contact Online Tax Return today. We’ve got an experienced team of registered tax accountants ready to maximise your next 2018 return.
This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice.