Straight out of Budget lockup, here’s a quick rundown of the main features of the Australian Federal Budget 2018.
The centrepiece of this year’s Budget is the release of the Government’s seven year Personal Income Tax Plan, which includes a targeted non-refundable offset aimed at low and middle income earners, a modest increase in the 32.5 percent threshold, with larger increases to the thresholds to follow in 2022 and 2024; and removing the 37 percent bracket from 2024.
There were few new announcements for business tax in this year's Budget, but the Government has confirmed its commitment to previous unenacted measures, including its Enterprise Tax Plan.
Changes to the R&D tax incentive will introduce an incremental intensity requirement for larger entities, and also increase the maximum eligible expenditure threshold to $150 million.
Measures intended to address the Black Economy, including a requirement for businesses tendering for Commonwealth contracts over $4 million to provide evidence of a satisfactory tax record, are expected to provide an addition $7.6 billion in revenue.
Read our two page PDF summary for economic and fiscal analysis and the top five business tax changes.
Read KPMG's detailed analysis of the key decisions and business implications of the 2018 Federal Budget.