The Government handed down the 2019/20 Federal Budget on Tuesday 2 April 2019.
Some of the important proposals include:
• Increasing and expanding access to the instant asset write-off from 7:30 pm (AEDT) on 2 April 2019 (i.e., ‘Budget night’) until 30 June 2020, as follows:
– Increasing the instant asset write-off threshold from $25,000 to $30,000.
– Making the instant asset write-off available to medium sized businesses (with aggregated annual turnover of $10 million or more, but less than $50 million).
Editor: The legislation to make the above changes to the instant asset write-off has already been passed and received Royal Assent.
• Allowing individuals aged 65 and 66 years to:
– make voluntary superannuation contributions (both concessional and non-concessional) without meeting the work test from 1 July 2020; and
– make up to three years of non-concessional contributions under the bring-forward rule (without satisfying the work test).
• Increasing the upper threshold of the 19% personal income tax bracket to $45,000 from 1 July 2022, and reducing the 32.5% marginal tax rate to 30% from 1 July 2024 (in addition to changes already legislated).
• Increasing the Low and Middle Income Tax Offset (‘LAMITO’), with effect from the 2019 income year, to provide tax relief of up to $1,080 per annum, as well as an increased base amount of $255 per annum.
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Please Note: Many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances.