Federal Budget 2019 – summary of the key revenue measures as announced last night…

  • More than doubling the low and middle income tax offset up to $1,080 from 2018-19 (for taxpayers earning up to $126K per year). This relief will be available to Australians after tax returns for the 2018-19 year are submitted from 1 July 2019.
  • Lowering the 32.5% tax rate to 30% from 1 July 2024. This will cover all taxpayers earning between $45,000 and $200,000 and means that 94% of taxpayers will pay no more than 30 cents in the dollar.
  • With the Government’s announced changes, from 2024-25, there would only be 3 personal income tax rates – 19%, 30% and 45%.
  • Increasing the instant asset write-off from $25,000 to $30,000, with effect from 7:30pm (AEDT) on 2 April 2019.
  • Extending the above mentioned write-off threshold to businesses with a turnover of up to $50 million (this will only apply to 30 June 2020).
  • A Tax exemption for grants to primary producers, small businesses and non-profit organisations that have been impacted by the North Queensland floods.
  • Defer by 12 months start date of the proposed Div 7A amendments to 1 July 2020.
  • An additional $1 billion in funding over 4 years to extend the operation of the Tax Avoidance Taskforce.
  • Strengthening of the current ABN System.
  • Increasing the Medicare levy low-income thresholds.
  • The current tax relief for merging super funds will be made permanent (it was due to expire on 1 July 2020).
  • Exempt current pension income calculation to be simplified for super funds.
  • LCT relief for farmers and tourism operators.
  • Minor amendments to the current hybrid mismatch rules.

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