Tax cuts and infrastructure spending are the headline items in this year’s Budget, but there is plenty more.
For example, small businesses earning less than $50 million a year will benefit from a fall in the tax rate to 25% and they will be able to write off assets up to $30,000. Middle income earners will benefit with a tax cut of $550. No tax cuts for higher income earners though.
The plans within this Budget will only happen if the Coalition is re-elected in the upcoming election. For more detail on the Budget and what it all could mean for you, here is a breakdown of the details.
Some of the ‘key impacts’ for businesses and stakeholders across Australia, if Budget measures become law, will include:
1. 20% increase in the immediate asset write-off to $30,000 for businesses that turnover less than $50m;
2. Six-year staged reduction in the marginal tax rate from 32.5% to more closely align with the corporate tax rate, which is hoped to stimulate consumer spending;
3. Low-income taxpayer’s receipt of $1,080 per individual (or $2,160 for dual income families) from an increase in the low-income offset for individuals.
4.Stimulation of activity in the infrastructure construction sector, and
5.The Labor Party is proposing to abolish franking credit refunds.
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