After reviewing the 2019 budget, I say with some relief there is not a great deal of change this year. And the bits that do change with regard to Tax it is generally positive.
Income Tax Cuts
Over the next five years there be a decrease in tax to low and middle income earners. Below is a summary of the proposed changes. The table below shows the proposed changes and timetable.
The main points to note:
- the upper threshold for the 19% marginal rate will increase from $37,000 to $45,000
- The 32.5% marginal tax rate will reduce to 30%
- The 37% rate will be abolished
At last superannuation by and large has escaped major changes and the main change is positive being that the extension of the age from 65 to 67 to make deductible contributions without meeting the work test.
Also people under 67 years can make non tax deductible contributions up to $300,000 in one year as long as your member balance is less than $1.6 million.
The increase of the instant asset write-off from $25,000 to $30,000 is welcomed. This applies to businesses with a turnover of up to $50 million (an increase from $10 million). This is applicable immediately and will go to 30 June 2020.
If you would like a more in depth review of the budget please see the attachment.
Should you have any questions regarding any of the above or anything contained in the budget please contact my staff or myself and we will be willing to assist.