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.
