Salary sacrificing means allotting a portion of an individual’s pre-tax salary to be exchanged with a benefit that is of similar value. Is it beneficial?
Federal Budget 2019: Superannuation Federal Budget 2019 Initiatives: Superannuation Changes to voluntary super contributions Increasing age limit for spouse contributions Extended access to bring-forward non-concessional contributions Changes to Voluntary Super Contributions Currently, people aged 65 to 74 can only make voluntary superannuation contributions if they meet the work test which requires working a minimum of 40 hours over a 30 day period in the relevant financial year. Increasing Age Limit for Spouse Contributions Currently those aged 70 and over, cannot receive spouse contributions. It is proposed that an increase in the age limit for spouse contributions to 74 will give older Australians greater flexibility to save for retirement. Extended Access to Bring-Forward Non-concessional Contributions Australians aged 65 and 66 will also now be able to make up to three years of non-concessional contributions to super under the exiting bring-forward rule.
Federal Budget 2019: Tax (individuals) Federal Budget 2019 Initiatives: Tax (individuals) Immediate tax relief for low-to-middle income earners Reduction of key marginal tax rates Immediate tax cuts for low-to-middle income earners Effective 1 July 2019 The Low and Middle Income Tax Offset (LMITO) was introduced in last year's Budget as an addition to the the Low Income Tax Offset (LITO). The LMITO will increase for individuals and families, starting from the current financial year, with eligible low-to-middle income earners receiving a payment after submitting their tax return. The base rate for the LMITO will increase from $200 to $255 and the maximum payment will increase from $530 to $1,080. From 1 July 2022, both offsets will be replaced by a single low-income tax offset. Extension to personal income tax cuts Over the next five years, many Australians will receive a decrease to their income tax rate in one of three ways: The upper threshold for the 19% marginal tax rate will increase from $37,000 to $45,000. The 32.5% marginal tax rate will reduce to 30%. The 37% marginal tax rate will be abolished (this change has already been legislated). These changes will be progressively rolled out between now and 1 July 2024, as shown in the table below: Increasing the Medicare Levy low-income threshold The Government will increase the Medicare Levy low-income threshold for singles, families, and seniors and pensioners from the 2018-19 income year. You won't be charged the Medicare Levy if your taxable income is below
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