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.