Given we will have an election called any day or week now, this is an election budget. A complication with the timing of this budget is whether any of it can or will be passed before an election is called and parliament is dissolved.
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Please see our 5 minute summary of this year’s Federal Budget. Should you have any specific questions, please feel free to contact us to discuss.
– Commencing this financial year for four years, there will be a low to middle income tax offset for those earning between $48,000 up to $126,000. A full offset for of $1,080 for those earning between $48,000 and $90,000 per annum will apply, and it will scale down up to an income of $126,000.
Medium to Longer Term
– The 32.5% tax bracket (currently applicable for those earning $37,001 to $90,000) will become a 30% tax bracket by 2024-2025.
– The 19% tax bracket will eventually apply at incomes of up to $45,000 (currently $37,000).
Small to Medium Business
– From 7.30pm last night, businesses with a turnover of less than $50 million will be able to instantly write-off individual assets costing $30,000 or less rather than depreciating them, up until 30 June 2020.
– Proposed changes to loans from companies to shareholders (referred to as Division 7A) have been deferred for another 12 months, to apply from 1 July 2020. We will discuss this with you if it applies.
– Within eligible trades, businesses will receive up to $8,000 for new apprentices over the time of the apprenticeship. Incentives will now be:
– $1,500 on commencement
– $2,000 after 12 months
– $3,500 at completion
– Apprentices themselves will receive a $2,000 payment. This will be staggered as $1,000 after 12 months, and the final $1,000 on completion of their trade.
– Eligible occupations include (and will be reviewed and updated every 12 months): Carpenters and joiners; Plumbers; Hairdressers; Air-conditioning and refrigeration mechanics; Bricklayers and stonemasons; Plasterers; Bakers and pastry cooks; Vehicle painters; Wall and floor tilers and Arborists.
– An extra $60 million will be provided for the Export Market Development Grant Scheme. If you are an exporter or thinking of exporting, please discuss this with us as we are accredited with Austrade to advise on this area.
– From 1 July 2020, those aged 65 and 66 can make voluntary concessional and non-concessional contributions to superannuation, and up to 3 years non-concessional contributions without the complication of needing to meet the work test. This brings the ages into line with the shift in eligibility age for the age pension
– Contributions for a spouse can be made up to the age of 74
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