The 2019/20 Federal Budget in a snapshot
- Published: April 9, 2019
- Author: Alex Nakonechnyy
The 2019/20 Federal Budget was handed down on Tuesday 2 April by Treasurer Josh Frydenberg. Please see a snapshot of what was announced below.
Income Tax Cuts
Personal tax rate changes
- Immediate tax relief for low-to-middle income earners of up to $1,080 for singles or up to $2,160 for dual income families to ease the cost of living.
- From 1 July 2022, the top threshold for the 19% personal marginal tax bracket is proposed to increase to $45,000. The current threshold is $37,000.
- From 1 July 2022, the maximum Low Income Tax Offset is proposed to increase from the current $445 to $700.
- From 1 July 2024, the government proposes to reduce the current 32.5% marginal tax rate to 30%.
- From 2 April 2019, the small business instant asset write-off will increase from $20,000 to $30,000.
Topping up retirement accounts will be made easier for some.
- From 1 July 2020, the superannuation contributions (both pre-tax and post-tax) will be extended up to and including age 66 without meeting the work test. To meet the work test, an individual must have worked for 40 hours in 30 consecutive days in the relevant financial year.
- From 1 July 2020, anyone up to and including age 74 (currently it’s age 70) will be able to receive spouse contributions. Work test will need to be met if you are over age 67.
Social Security (Centrelink)
One-off energy payment
- Individuals in receipt of a qualifying income support payment (as at 2 April 2019) will receive a one-off Energy Assistance Payment of $75 for singles and $125 for couples (combined) to assist with energy bills.
- Qualifying payments include:
- Age Pension/ Service Pension,
- Carer Payment
- Disability Support Pension,
- Parenting Payment Single, and
- Veterans’ Service Pension, Income Support Supplement, and disability payments.
- From 1 July 2019, Former spouses and former de-facto partners of veterans will be able to access the Partner Service Pension when they separate from their veteran partner.
Better access to care
From 1 July 2018, more funding will be available to improve the quality, safety and accessibility of residential and home care services, including:
- The release of an additional 10,000 home care packages across the four package levels, and
- Developing an end-to-end compliance framework for the Home Care program, including increasing auditing and monitoring of home care providers.
The information contained herein is of a general nature only and is not intended to be relied upon nor is it a substitute for appropriate professional advice. Whilst all care has been taken in the preparation of the material, it is not guaranteed to be accurate. Individual circumstances are different and as such, require specific examination. Lanyon Partners cannot accept liability for any loss or damage of any kind arising out of the use of or reliance upon all or any part of this material. Additional information may be made available upon request.