Personal income tax bracket thresholds
- Over a seven-year period, the Government has proposed changes to the personal income tax thresholds and to phase-out the 37% tax rate.
Two percent Medicare Levy retained
- The Government will retain the Medicare Levy rate at 2.0% and will not proceed with the proposed increase to 2.5% of taxable income from 1 July 2019
Low and Middle Income Tax Offset
- A new non-refundable Low and Middle Income Tax Offset (LMITO) will be introduced.
- The LMITO will be a temporary measure applying from 2018-19 until 2021-22.
- The maximum annual offset will be $530 and will cut out for those with a taxable income above $125,333 per annum.
Superannuation work test exemption
- From 1 July 2019 the Government will introduce an exemption from the work test for voluntary contributions to superannuation.
- This is available for retirees aged 65 to 74 with superannuation balances below $300,000 in the first financial year that they do not meet the work test.
- The exemption will be available for 12 months from the end of the financial year in which they last met the work test.
Increasing the maximum number of members
- Self-managed Superannuation Funds (SMSFs) From 1 July 2019, the maximum number of members allowable in a new or existing self-managed superannuation fund (SMSF) or small APRA fund will increase from four to six members.
Introduce an Income Test for Carer Allowance
- From 20 September 2018 the Government will introduce a $250,000 annual Income Test threshold for the Carer Allowance (currently $127.10 per fortnight) and Carer Allowance (Child) Health Care Card.