What the 2019 Federal Budget means for you

April 5, 2019

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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