Australia

Highlights

Last night (2 April 2019) the Treasurer, Mr Josh Frydenberg handed down the 2019-20 Federal Budget, being the last Budget of the current Coalition Government before the next (May 2019) Federal Election.

The cash budget surplus, the first in 12 years, is estimated to be $7.1bn for 2019-20 (up from $2.2bn as estimated last May) representing around 0.4% of estimated GDP.  The budget position is predicted to improve over the forward estimates with a total of $45bn of surpluses over the four years to 2022-23.

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Superannuation

From 1 July 2020, individuals aged 65 and 66 will be able to make voluntary superannuation contributions (both concessional and non-concessional), without satisfying the work test.

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Individuals

Following this year’s Budget, individuals will benefit from further reductions in personal income tax, building on changes announced in the 2018-19 Federal budget.

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Small and Medium Business

The instant asset write-off will be increased to $30,000 with medium sized businesses having access for the first time.

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Corporate and International Businesses

$1bn additional funding has been promised to the Tax Avoidance Taskforce, which is expected to bring in $3.6bn in additional revenue over the next four years.

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Black Economy

Steps will be taken to strengthen the ABN system with increased obligations for ABN holders. Sham contracting will also be targeted via the introduction of a dedicated sham contracting unit.

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Other Measures

Other measures announced include a series of measures to help support our farmers and the extension of the deductible gift recipient status to Men’s Sheds and Women’s Sheds.

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R&D and Incentives

SME businesses will benefit from a $60m funding increase the Export Development Grant. The changes to the R&D Tax Incentive remain on hold.

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Two Minute Budget Brief

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Does the 2019-20 Budget have a financial impact for you? Invest just 2 minutes of your time and watch our video to find out.