Wondering how the 2018 Budget will affect you directly? From tax cuts to changes to capital gains discounts, here's a breakdown of the big changes that may affect you.
Tax cuts for low and middle-income earners:
People earning up to $37,000 per year will get up to $200 back on their tax return, and those on up to $90,000 will receive a maximum of $530. This is through a low and middle-income tax offset that you will receive when lodging your tax return.
Income tax thresholds will change over the next seven years to flatten out the tax system, meaning 94 per cent of Australians will pay no more than the marginal tax rate of 32.5 cents in the dollar. From 1 July 18, the top of the 32.5% bracket will increase to $90,000. Further changes are proposed for 2022 and a removal of the 37% bracket in 2024.
Large cash payments to be banned:
Get that cash out from under the mattress now! In an attempt to stamp out money laundering and tax evasion, cash payments over $10,000 will be banned from July 1, 2019. Payments will instead have to be made through electronic transfer or by cheque.
Tax deductions for vacant land:
From 1 July 2019, tax deductions will not be allowed for expenses associated with holding vacant land