Federal Budget 2018–19 update
6/12/2018 9:36:36 AM
The Federal Government delivered its 2018-19 Budget last night on Tuesday, May 8.
We’re pleased to advise that there were no major announcements concerning existing salary packaging or novated leasing provisions.
There were, however, some minor income tax rate concessions announced to address bracket creep, commencing 1 July 2018 and concluding 1 July 2024.
Additionally, the measure announced in last year’s budget to increase the Medicare Levy by 0.5% to 2.5% from 1 July 2019, to fund the National Disability Insurance Scheme, has been scrapped.
As a result, the planned increase in the FBT rate by 0.5% to 47.5% from 1 April 2020 will not proceed.
What happens next?
There is nothing you need to do. You can continue to package as normal.
We’re here to help
If you have any questions about your salary packaging or novated leasing arrangements, please contact us.