2019 Federal Budget Highlights
On Tuesday evening, 2 April 2019, the Federal Treasurer Josh Frydenberg delivered the 2019 Federal Budget. Labeled an ‘Election Budget’, the announcement included a range of tax cuts for both individuals and businesses. There were also a number of positive changes to superannuation and support for the Aged Care sector.
Here are some of the highlights.
Personal income tax
People earning up to $37,000 a year will receive tax relief of up to $255 a year; taxpayers who earn between $37,001 to $47,999 annually will get between $255 to $1,080 back; those earning $48,000 to $90,000 will receive the full tax relief of $1,080; and those earning upwards of $90,000 will see their tax relief gradually reduce from $1,080 to zero.
As of 2022-23, the 19 per cent tax bracket will include those earning between $41,000 and $45,000. Those earners previously were taxed at the 32.5 per cent tax rate. For those earning between $45,001 to $200,000, the tax rate will be lowered from 32.5 per cent to 30 per cent from 1 July 2024.
Small business owners
For small and medium-sized companies turning over less than $50 million a year, the tax rate will drop from 27.5 per cent in the 2019-20 financial year to 25 per cent in 2021-22 — five years earlier than planned — and further lowered to 25% by 2021-22.
Also for small business (turnover of up to $50 million pa), the ability to instantly write-off asset purchases will increase from $25,000 to $30,000.
From 1 July 2020, Australians aged 65 and 66 will no longer need to meet work test ( which requires you to be gainfully employed' for at least 40 hours in a period of 30 consecutive days in each financial year) in order to make super contributions.
Spouse contributions will be increased from age 69 to age 74.
Social, Medical and Infrastructure
A one-off Energy Assistance Payment worth $75 for singles and $125 for couples will be delivered to age pensioners, people on the Disability Support Pension, veterans, carers and single parents. This will be delivered to those eligible before July 2019.
In a commitment to improve the quality, safety and accessibility of aged care services, the Senior Australians and Aged Care sector are set to be provided with $724.8 million over five years.
$35.7 million over five years for an increase to the dementia and veterans' home care supplements to support home care recipients who require additional care to stay in their homes longer.
$81.8 billion will be spent on healthcare, including towards breast, kidney, bladder, liver, and skin cancer patients, people with acute Leukaemia; those with complex and chronic heart conditions; people who need MRI machines, dental services.
$737 million will be spent across seven years on mental health including youth mental health and suicide prevention.
A $500 million fund to invest in car parks at train stations to help reduce traffic, allow for more affordable commutes and significantly reduce travel times to metro centres across the country.
It should be noted that some of these announcements are dependent on the result of the 2019 Federal election
Please feel free to get in touch if you have any comment or questions.