Federal Budget 2019 – 2020
On Tuesday 2 April, Federal Treasure, Mr Josh Frydenberg delivered Australia’s Federal Budget. Unsurprisingly, there are minimum changes to our tax system, with the main focus being enhancement of tax integrity measures. Superannuation legislation has been left mostly unchanged.
Mr Frydenberg advised that the budget is “back in black” announcing a surplus of $7.1 billion next year and forecasting further surplus for 3 years after that. The aim of the budget is “restoring the nation’s finances”.
- Proposed changes that will further lower individual taxes. Including an increase to low and middle income tax offset of up to $1,080 that will apply from 2018-19 to 2021-22 for all individual that earn $126,000 or less.
- Expanding the instant asset write-off to businesses with an annual turnover of less than $50 million,
- Increasing the instant asset write-off amount from $20,000 to $30,000. This will apply to any assets first used or installed between now and 30 June 2020.
- The Australian Taxation Office will receive $1 billion in funding to help its continued efforts to curb tax avoidance through their Tax Avoidance Taskforce. Targeting large business, international and high wealth individuals, they are expected to recoup an estimated $3.6 billion.
- Significant infrastructure spending of $75 million for projects like; fast rail in Victoria, Sydney Metro and nationwide road projects.
- Australian Business Number holders will be required to lodge their income tax return and confirm their details on the Australian Business Register annually to retain their ABN Status.