The Morrison government last night handed down their 2019 budget, and for the first time in twelve years it is “back in the black”.
Being an election budget, there are tax cuts, no new tax increases, and probably some of the most contrasting tax policies to the opposition we’ve seen in decades.
Some of the highlights include:
- Lowering the 32.5% individual tax rate to 30% in 2024-25.
- Increasing the low and middle-income tax offset.
- Increasing the immediate asset write-off threshold for eligible businesses to $30,000 from 2 April 2019.
- Increasing the Medicare low-income thresholds for singles, families and seniors from the 2018-19 year.
- ABN holders will be required to lodge their income tax returns and confirm the accuracy of their details on the Australian Business Register annually to retain their ABN status.
- The start date of amendments to private company loans will be delayed by 12 months to 1 July 2020.
- For eligible primary producers and tourism operators, vehicles acquired on or after 1 July 2019 will be able to apply for a refund of luxury car tax paid up to a maximum of $10,000.
- People qualifying for eligible payments on 2 April 2019 will receive a one-off Energy Assistance Payment of $75 for singles and $62.50 for each member of a couple.
- From 1 July 2019, net income generated from the forced sale of livestock will be exempted from the Farm Household Allowance payment assessment, when that income is invested into a farm management deposit.
- The HELP debt incurred for recognized teaching qualifications after teachers have been placed in very remote locations of Australia for four years will be extinguished, and indexation on HELP debts of all teachers whilst placed in very remote locations will cease from 14 February 2019.