Despite the 2019-20 budget being a series of election promises rather than a set-in-stone budget, here’s how it could affect your family’s monthly budget.
Middle-income tax relief
Middle-income workers earning between $48,001 and $90,000 could receive immediate tax savings of up to $1,080 for a single or $2,160 for a dual-income family as early as July 1.
Workers who earn $90,001 to $126,000 don’t miss out on the action, either. However the more you earn over $90,000 the less you’ll receive until the tax savings taper off completely at $126,001.
Tax brackets flattened
High-income earners could also benefit under the Coalition’s plan to flatten the tax brackets, albeit by 2024-25.
Essentially, all taxpayers earning between $45,000 and $200,000 would have their tax rate reduced to 30%.
This would see a couple earning $200,000 per person receiving total household tax relief of $23,280.
However, the changes are not scheduled to come into effect until 2024-25 and since Labor does not support the plan, the Coalition would need to win the next two elections to implement it.
SME business benefits
Tax rates for small and medium businesses will drop from 27.5% to 26% next year, before falling to 25% in 2021.
The government is also increasing the instant asset write-off threshold from $25,000 to $30,000 per asset and will make it available to businesses with an annual turnover as high as $50 million (up from the current $10 million cut-off).
Meanwhile, apprentice incentive payments are being increased for businesses that employ carpenters, plumbers, hairdressers, bricklayers, plasterers, bakers, vehicle painters, tilers and arborists, to name a few.
Employers will have their apprentice incentive payments doubled to $8,000 per placement, while apprentices will receive a $2,000 incentive payment.
Superannuation changes
Australians aged 65 and 66 will be able to make voluntary superannuation contributions without having to work at least 40 hours over a 30 day period.
They’ll also be allowed to make up to three years worth of voluntary contributions ($300,000 in total) in just one year if they wish.
The government is also increasing the age limit for spousal contributions from 69 to 74 years.
Energy assistance payment
A one-off Energy Assistance Payment, worth $75 for singles and $125 for couples, will help age pensioners, people on the Disability Support Pension, veterans, carers, single parents and Newstart recipients cover the cost of rising power prices.
You can find more information on specific details of the 2019-20 budget here.
