Post Budget Summary...
Good morning all,
I'm pleased to provide a summary of the announcements from last night's Federal Government Budget. As per usual, these are announcements only and usually take some time to come into law, if at all. Not so usually, this time, there is also an election coming up soon with a good chance of the current Government not being returned to power. Therefore, more than ever, take these with a grain of salt.
Tax: Various personal income tax changes were announced. Those being in the form of changes to tax rates, income thresholds and tax offsets/rebates. They are targeted predominantly towards lower and middle income earners (by popular definitions). Clearly there are many votes to be won there.
Superannuation: Not a lot of changes and few of significant impact. The only one I would highlight is that (from 1 July 2020), the age at which the 'work test' applies to be able to make Super contributions, is to be lifted from age 65 to age 67 - good news. In further good news and related to the first point, people aged 65 or 66 would then also be able to use the 'bring-forward' provisions, where an additional 2 years of post-tax contributions can be made. This currently stops once the person reaches age 65 at which point only the $100K pa contributions can be made.
Small Business: Perhaps most significant, the 'instant asset write-off' (deduction) has been not just increased from $20,000 to $30,000 (per asset) but the business's turnover to meet eligibility has increased from $10m to $50m.
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On top of all this, there were also various announcements regarding Social Security, Infrastructure spending etc.
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Please feel free to go to the below documents for further details on the above topics. And then let's see what happens post election.....