Blog post

Federal Budget 2018: Details you need to know

The Treasurer said spending had been brought under control leading to a stronger economy and more jobs. The proposed Budget measures focussed on changes to taxation, spending on infrastructure and increases aiming to boost education and aged care.

Changes to taxation

Those earning up to $37,000 and paying 19 cents in the dollar would have their tax reduced by up to $200 per year
Those earning more than $37,000 and paying 32.5 cents in the dollar would have their tax reduced by up to $530 per year
Tax relief would reduce to zero at just over $125,000
In the 2016-17 Budget the threshold for the 32.5% tax bracket increased from $80,000 to $87,000. This threshold would be set at $90,000 from 1 July 2018
Australians earning more than $41,000 would only pay 32.5 cents in the dollar all the way up to the top marginal tax rate threshold which will be adjusted to $200,001
The $37,000 threshold would be lifted to $41,000 and the $90,000 threshold would be raised again to $120,000, preventing 1.8 million Australians paying 37 cents in the dollar
37% tax bracket to be abolished in 2024-25


Australian Taxation Office (ATO) to proactively find lost super and have it sent to your active superannuation account
Ban on account exit fees when changing superannuation funds
Prevent superannuation funds from forcing people under 25 or with low balances to pay for life insurance policies they have not asked for or do not need
The Pension Loans Scheme would be opened to all older Australians to include full rate pensioners and self-funded retirees, to boost retirement income by up to $17,800 for a couple, without impacting their eligibility for the pension or other benefits
Pension Work Bonus to allow pensioners to earn an extra $1,300 a year without reducing their pension payments and extended to self-employed individuals who would be able to earn up to $7,800 per year
No change for franked dividends tax refunds for investors in Australian companies


The Parental Income Test for access to Youth Allowance for independent students from 1 January 2019 to be relaxed by an additional $10,000 per annum and an additional $10,000 for each additional child.

Small business

Extension of instant asset write off for businesses with a turnover up to $10m on purchases of up to $20,000
Additional $250m for the Skilling Australians Fund to develop the people and skills needed to grow businesses

Rural and agribusiness

Additional funding to protect against pests, disease and weeds
Funding for new technology to better detect biosecurity risks


$75bn, 10-year rolling infrastructure plan to continue including:
$3.5bn to establish the Roads of Strategic Importance initiative to upgrade key freight routes to improve road safety and better connect sectors such as agriculture and mining to export markets - including $400m for roads in Tasmania, $100m for the Barton Highway in NSW and the ACT and $1.5bn for roads in the Northern Territory
$1bn to establish an Urban Congestion Fund
$250m to establish the Major Protect Business Case Fund for development and planning of national projects
$160m to upgrade sections of the Outback Way

Aged care

Government to increase the number of home care places by 14,000 over four years at a cost of $1.6bn
Over 74,000 high level home care places to be available by 2021-2022, an increase of 86% on 2017-18
$146m to improve access to aged care services in rural, regional and remote Australia
$83m for increased support for mental health services in residential aged care facilities, especially to combat depression and loneliness
Wage subsidies of up to $10,000 for employers who take on older Australians who choose to stay in work

Schools, students and education

Schools to receive a record $18.7bn, with a legislated rise to around $30bn in 2027 Extension of the National Schools Chaplaincy program on a permanent basis, with an anti-bullying focus
Extension of the National Partnership Agreement on universal access to early childhood education for a further year at a cost of $440 million
On July 2, the Turnbull Government's new child care package will come into effect


An extra $1.4bn for listings on the Pharmaceutical Benefits Scheme (PBS), including medicines to treat spinal muscular atrophy, breast cancer, refractory multiple myeloma, and relapsing-remitting multiple sclerosis, as well as a new medicine to prevent HIV Lifeline Australia to receive additional support, as will funding for Mental Health Research with $125m over 10 years from the Medical Research Future Fund
$20.9m to support parents and infants by funding tests for new conditions and to ensure that debilitating conditions are picked up at the earliest opportunity
$154m to promote active and healthy living, including $83m to improve existing community sport facilities, and to expand support for the Sporting Schools and Local Sporting Champions programs
In rural and regional areas, funding for a plan to get more doctors to where they are needed through a new workforce incentive program, including five regional medical schools within the broader Murray Darling region
Increased financial support for the Royal Flying Doctor Service to guarantee rural and remote access to dental, mental health and emergency medical services
$550m commitment to address remote housing needs in the Northern Territory for Indigenous Australians, as well as $1.7bn through primary health care model
$112m for veteran centric reform package, as well as support for ongoing veterans' mental health and employment initiatives

Protecting Australia

$294m to harden up security at airports
$50m to upgrade security infrastructure at 64 regional airports
$122m to enhance screening capability for inbound air cargo and international mail
$122m to increase police and border force presence and capability at nine major domestic and international airports
Additional investment to improve scrutiny of visa processing and passenger screening, and clearance of visitors and goods at our borders
$160m to help police, criminal intelligence and domestic security agencies fight crime and prevent terrorism, including $68.6m to disrupt, prevent and investigate child exploitation and abuse

Keep in mind

Any changes outlined in the Federal Budget must be passed by both the House of Representatives, which is controlled by the government, and the Senate, where proposed expenditures are subject to examination within Senate estimates hearings. This means any proposed cuts or changes outlined above may not necessarily become law.
Taxation considerations are general and based on present taxation laws and may be subject to change. You should seek independent, professional tax advice before making any decision based on this information.

Source -  www.commbank.com.au/guidance/economy/federal-budget-2018--details-you-need-to-know-201805.html?ei=fb18-needtoknow

In Response to the Royal Commission into Banking

As I'm sure you would agree, we take great pride in the service we provide to you and all of our customers.
We understand that taking out a home loan is almost certainly the most important financial decision you will ever make. Knowing this, we take time to understand your personal and financial situation, help you find a suitable loan and then navigate with you through the whole application process.
Over the past month, there has been a lot of media coverage on the Banking Royal Commission. We understand this may have caused you some concern.
The first few weeks of the Commission looked at the mortgage broking industry. It's clear from their findings that there have been some individual instances of poor behavior. This is both alarming and disappointing, and highlights that there are some changes that should be made.
One of the things that hasn't been reported is that there is already a concerted effort between brokers, banks and regulatory industry bodies to make these required changes.
Our industry has come together, under a body called the Combined Industry Forum (CIF), which is proposing reforms that will continue to improve standards and make a great industry even better.
ASIC and the Federal Government are being regularly updated by the CIF as we work together to determine what reforms are needed. The industry is confident that the reforms proposed to date have already addressed the concerns identified by the Royal Commission.
Thank you for your continued support and please do not hesitate to contact me if there is anything I can do to assist you. .


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