Federal Budget 2019-20 Tax and Accounting Review

The Federal Treasurer, the Hon. Josh Frydenberg MP, delivered the 2019 Federal Budget on 2 April 2019.

As widely predicted, the announcement included a range of tax cuts for both individuals and businesses. The Treasurer also announced increased funding for regulators to encourage tax and superannuation compliance, a number of positive changes to superannuation, and an affirmation of previously announced aged care measures.

This summary provides coverage of the key issues.

Highlights

Personal income tax

  • Increases in the low and middle income tax offset to apply in 2018-19. Low and middle tax offset to be increased up to $1,080 for this financial year.
  • Other tax benefits (tax rates/thresholds and low income tax offset changes) to commence in 2022-23 and later income years.

Business owners

  • Extension of the provision allowing small business to instantly write-off asset purchases. Is increasing the instant asset write-off threshold from $25,000 to $30,000 for business with turnover up to $50 Million.
  • Further consultation on Division 7A reform. Delaying the start date by 12 months.

Superannuation

  • Work Test changes – from 1 July 2020, Australians aged 65 and 66 Will no longer need to meet work test.
  • Spouse contributions – will be increased from age 69 to age 74.
  • Bring-forward of the NCC cap. In line with Work test changes
  • ECPI administration simplification.

Social Security

  • Energy Assistance Payment. For eligible recipients a one-off Energy Assistance Payment of $75 for singles and $62.50 for each member of a couple.

Aged care

  • Improving the quality, safety and accessibility of aged care services. Senior Australians and Aged Care sector to be provide with $724.8 million over five years.

We have also included a more detailed summary of the budget, please click on the following link.

Budget 2019 Summary

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2018 Federal Budget