The 1 July changes you need to know
The 2018/19 financial year has begun, and there are a few changes to the rules and regulations surrounding superannuation and tax that you should know about:
- The low and middle-income tax offset will be paid as part of the tax return at the end of the 2018/19 financial year. Those earning more than $87,000 will also receive a tax cut, because the top threshold of the 32.5 per cent tax bracket has been raised from $87,000 to $90,000.
- First home buyers can now apply to the ATO to withdraw their First Home Super Saver Scheme balance (to use as a deposit when purchasing a home).
- Those over 65 can now use the downsizer contribution to make a one-off contribution to super upon the sale of their home.
- The ATO has now taken over responsibility of the administration over compassionate grounds claims (this responsibility previously rested with the Department of Human Services).
- The Government co-contribution thresholds have changed. The lower income threshold is now set at $37,697 (up from $36,813) and the higher income threshold at $52,697 (from $51,813).
- Intrust Super’s Super Stream Pension payments options are changing from bi-monthly to fortnightly. This means pension members in this option will receive 26 payments annually, rather than 24.
If you’d like any more information about these changes, please don’t hesitate to give Intrust Super a call on 132 467.