Budget Summary
On Tuesday 8th May 2018 the Treasurer, Scott Morrison, released the Government’s 2018 Budget.
This newsletter outlines the proposals contained in last night’s budget. We ask that you read through the proposed changes as they may directly impact your situation.
The key take outs of the 2018 Budget were as follows:
– The maximum number of members allowable in a Self Managed Superannuation Fund (SMSF) will be increased from 4 to 6
– Those running a SMSF with good record keeping and compliance history may move to a three-yearly audit cycle
– The ability to contribute to superannuation after age 65 without meeting the work test
– Income tax cuts will be delivered over a 7 year period through a combination of tax rate threshold changes and tax offsets
– For working age pensioners, the Pension Work Bonus will be increased
These changes may be significant to your situation and may warrant further discussion. Feel free to contact our office to discuss any of the proposals in further detail.
JBS Views & Planning Opportunities
The one guarantee in our profession is change and once again this reiterates the importance of obtaining ongoing advice and continuing to review your situation to ensure that you are structured appropriately and are positioned well for the future. Here are some things to consider:
– It may be advantageous for those with a SMSF to increase their members up to 6 for intergenerational wealth transfer purposes
– Income tax cuts may increase your surplus income and therefore an opportune time to decide how to best allocate these expected additional funds
– If you are over 65 and not working, you could consider boosting your superannuation assets upon meeting certain requirements
As always prior to making any significant financial changes, please give Jenny, Warren or Glenn a call, or even if you just like to discuss how the budget might affect you personally.
Please click here for a full detailed report on the above and other changes as announced.
Please Note: The measures outlined in the Federal Budget are proposals only and may or may not be made law and will depend on the outcome of the upcoming election.