Budget 2019-20 Highlights & Key Points This is a Budget not only designed to showcase the return to surplus (and by default the Government’s economic credentials) but engage voters with initiatives to make them feel like they are more prosperous. A massive infrastructure spend adds to this sentiment and the Government has stated that it…
Other Budget considerations $3.9bn Disaster response funding Australia has seen its fair share of catastrophic disasters this year. In response, the Government has announced the creation of a $3.9bn Emergency Response Fund. The Fund will provide $150m per annum from 2019-20 to 202-24 following a significant and catastrophic natural disaster. This funding is applied where…
Compliance $1bn ATO ‘sugar hit’ to tackle large corporates and high net wealth individuals Date of effect From 2019-20 The Government will provide $1bn over four years from 2019-20, including $6.5 million in capital funding, to the ATO to extend the operation of the Tax Avoidance Taskforce and to expand the Taskforce’s programs and…
Business Instant asset write-off increased to $30k and expanded to businesses under $50m Date of effect 7:30pm (AEDT) on 2 April 2019 to 30 June 2020 The threshold for the popular $20,000 instant asset write-off will increase to $30,000* from Budget night until 30 June 2020 when it will potentially return to its original…
Superannuation Superannuation ‘work test’ watered down & age limit for spouse contributions increased Date of effect 1 July 2020 As previously announced, from 1 July 2020, Australians aged 65 and 66 will be able to make voluntary superannuation contributions (concessional $25,000 p.a. and non-concessional $100,000 p.a.) without meeting the Work Test. Currently, voluntary contributions…
Individuals Personal income tax cuts As anticipated, the Budget celebrated the surplus with a $19.5bn package of personal income tax cuts for Australian residents. This package revises the legislated seven year income tax plan. The personal tax changes mean a tax saving of $855 for someone on an annual taxable income of $45,000 per annum…
ATO’s compliance approach The ATO works with employers by providing tools and calculators to help them understand and meet their super guarantee (SG) obligations and ‘get it right’. The ATO’s compliance approach supports employers who engage with them and want to get things right. They do take firmer action for those unwilling to meet their…
Benefits during emergencies exempt from FBT If your business assists employees during an emergency, for example floods, bushfires etc, then fringe benefits tax is unlikely to apply to the assistance you provide. While we doubt anyone would be thinking about FBT during a crisis, it’s good to know that the tax system does not disadvantage…
From 1 July Single Touch Payroll applies to all employers What employers need to report will also be extended to include certain salary sacrificed amounts. From 1 July 2019, single touch payroll – the direct reporting of salary and wages, PAYG withholding and superannuation contribution information to the ATO – will apply to all employers.…
Legislation in limbo A budget, an election and the legislation that hasn’t made it through. The February 2019 Parliamentary sitting days were the last opportunity before the Federal Budget for the Government to introduce or push through new legislation. Next month, on 2 April, Parliament reconvenes for the Federal Budget and it’s likely that an…