2019 Budget Overview - Mike Crowley & Associates

logo             8 McNamara Street, ORANGE

phone number

2019 Budget Overview

 

2019 Budget

What does it mean for you?

federal-budget-2019-infographic

Source: PwC

*Please note the provisions of the 2019 Federal Budget are not enacted immediately and are likely to be contingent upon a Liberal/National coalition election victory

Businesses

 

Instant Asset Write-off. This will change from the current $20,000k to $30,000. This is now available for businesses with a turnover of up to $50m (previously $10m).

30kwriteofftable

 

Source: Budget Paper No. 2 pages 14-15; Budget Overview: pages 14 and 35, and Treasurer's Media Release: Our plan for a stronger economy.

  • Further incentives for employing an apprentice. If you are in the Construction Industry, baking or hairdressing additional funding will be available for both employees and apprentices upon hitting key milestones within these industries. For employers, this will be up to $8,000 and $2,000 for the apprentices themselves.
  • The Fair Work Ombudsman will receive more funding to crack down on businesses engaging contractors that are classified as employees.

  • Fast-tracking the company tax rate cut from 30% and 27.5% to 25% for small to medium companies with an annual turnover of less than $50m.

  • Stay up to date to keep your ABN – If you are significantly behind in your income tax lodgements you are being put on notice (and we’re here to help!). From July 2021 you will need to lodge your tax return to hold onto your ABN.

  • Single Touch Payroll (STP). The Government has announced that it will support the expansion of the data collected through Single Touch Payroll (SIP') by the ATO and the use of this data by Commonwealth agencies. STP data will be expanded to include more information about gross pay amounts and other details. These changes will reduce the compliance burden for employers and individuals reporting information to multiple Government agencies but will increase the need for your payroll to be entered on a timely basis and with increased accuracy.

 

Individuals

Tax offset increases. The Low to Medium Income Tax Offset (LMITO) has been increased from a maximum of $530 to $1080. Individuals with income ranging between $48,001 and $90,000 will receive the full benefit with scaled benefits up to $126,000.
Tax rates. 30% marginal tax rate for income earners between $45,000 and $200,000 (currently 32.5%). This will not be effective until July 2024.  Potentially the most significant budget announcement is the 30 per cent marginal tax rate for income earners earning between $45,000 and $200,000 (Labor has indicated they will not support this proposal for higher income earners).

Rates in 2017-18

Thresholds in 2017-18

New Rates in 2024-25

New Thresholds in 2024-25

Nil

Up to $18,200

Nil

Up to $18,200

19 per cent

$18,201 - $37,000

19 per cent

$18,201 - $45,000

32.5 per cent

$37,001 - $87,000

30 per cent

$45,001 - $200,000

37 per cent

$87,001 - $180,000

-

-

45 per cent

Above $180,000

45 per cent

Above $200,000

Low income tax offset in 2017-18

Up to $445

Low income tax offset in 2024-25

Up to $700

Source: Budget.gov.au

 

 

Superannuation

65 and 66-year-olds will now be able to contribute to their superannuation without meeting the work test. Beyond allowing further family wealth into super, this also has the potential to better smooth balances between family members if they are around the $1.6m cap.​*Please note the provisions of the 2019 Federal Budget are not enacted immediately and are likely to be contingent upon a Liberal/National coalition election victory