Australians are set to head to the polling booths for the Federal election on Saturday 18th May 2019.
At Oncore, we thought we would break down the key points from the Federal budget released in the previous week leading up to the election announcement. See below for a recap of the highlights.
- From 1 July 2022 the top threshold of the 19% bracket will increase from $41,000 to $45,000. From 1 July 2024 the 32.5% tax rate will reduce to 30%
- The maximum low and middle-income tax offset will be doubled, to increase from $530 to $1,080 for singles, and $2,160 for couples, from as early as 1 July 2019.
- From 1 July 2020, there will be no work test requirement for individuals aged 65 and 66 when making concessional and non-concessional superannuation contributions, with the three-year non-concessional contribution cap bring‐forward strategy being extended to them from 1 July 2020
- For the 2018–2019 income year, the Medicare levy low-income threshold for singles will be increased to $22,398 (up from $21,980).
- The start date for ensuring insurance within superannuation is only offered on an opt-in basis for accounts with balances of less than $6,000 and new accounts belonging to members under 25, will be delayed until 1 October 2019.
- Small and medium businesses can immediately deduct eligible assets costing less than $30,000 (previously $25,000) first used or ready for use between 2 April 2019 and 30 June 2020 through Instant Asset Write-Off.
- For small and medium-sized businesses, the tax rate will be lowered from 27.5% to 25% by 2021/22, 5yrs earlier than previously planned.
- Single Touch Payroll (STP) reporting will be required for all small employers (with fewer than 20 employees) from 1 July 2019. A range of no-cost and low-cost STP solutions are now coming into the market.
- ABN holders will have their ABN removed from 1 July 2021 if they do not fulfil their income tax obligations. They will also be required to confirm their details on the ABR Register at the time of completing their income tax obligations.
- This Budget estimates a return to surplus of $7.1 billion (or 0.4% of GDP) in 2020, the first surplus in 12 years. Government net debt is expected to reduce from $373 billion in 2019 to $0 by 2030.
- The Tax Avoidance Taskforce operation is to be extended with the Government announcing $1 billion over four years from 2019/20 to the ATO, targeting multinationals, large public and private groups, trusts and high wealth individuals.
- Investment of $100bn in infrastructure over the next decade has been announced, with the majority of this spending being focused on roads and public transport.
- The Health & Aged Care Sector can expect further investment, with a $1.1 billion package announced to strengthen primary care, focusing on chronic disease care and general practice.
- The energy sector has been bolstered with more funding for new technologies and projects aimed at increasing energy security and alternative energy solutions.
- To assist with energy costs and general cost of living pressures, a one-off income tax exempt payment of $75 for singles, or $125 for couples, who are receiving social security payments has been announced.
- Assistance provided to urban and regional communities with investment in tourism, internet and mobile services, and airport upgrades.
- $6.3 billion provided to aid in drought assistance and loans for farmers and farming communities with $232 million being made available to help North Queenslanders affected by weather events