2019 Federal Budget Snapshot – How will it impact you?

03 Apr 2019 Federal Budget Snapshot – How will it impact you?

The Coalition is throwing a few pre-election sweeteners in the direction of low- to middle-income earners, by doubling the tax cuts they will receive the next time they file a tax return.

Last year, the Government announced it would give people earning up to $90,000 an instant tax cut of up to $530.

That will now be more than doubled to $1,080 for singles, and increase up to $2,160 for double-income families.

The tax offsets start to flatten out for people earning between $90,000 and $126,000.

The Government is also promising to reduce the 32.5 per cent tax rate to 30 per cent by July 2024, which will impact around 70 per cent of the nation’s taxpayers.

We’ve provided a snapshot below to show how the budget may impact you.

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  • $200.2 million over four years to support up to 80,000 new apprenticeships in industries with skills shortages
  • $132.4 million over four years to further improve the quality of the Vocational Education and Training (VET) system and pilot new skills organisations in key areas of future job growth
  • $263.3 million over seven years to improve access to youth mental health services across the national headspace network
  • $67.5 million over five years to trial 10 national training hubs to support school-based vocational education in regions with high youth unemployment
  • $62.4 million over four years from 2019-20 to expand second chance learning in language, literacy, numeracy and digital skills to upskill at-risk workers.

 

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  • Tax relief for low-and middle-income earners of up to $1,080 for singles or up to $2,160 for dual-income families. The offset will be available for the current tax year and up until 2022
  • Personal income tax rates will be reduced from 2024-25, with the Government replacing the 32.5% and 37% thresholds with a single 30% threshold
  • The low-income threshold for the Medicare levy will be increased from 2018-19. The family threshold will rise from $37,089 to $37,794. The threshold for singles will be increased from $21,980 to $22,398. For each dependent child or student, the family income thresholds increase by a further $3,471, instead of the previous amount of $3,406
  • $187.2 million to bring forward the indexation of all remaining GP services items on the Medicare Benefits Schedule (MBS) to 1 July 2019. Ultrasound and x-ray diagnostic imaging items will also be indexed from 1 July 2020 at a cost of $198.6 million
  • $328 million over four years from 2018-19 towards initiatives to reduce domestic and family violence against women and children. The initiatives include $64 million in additional funding over two years to ensure that 1800RESPECT can meet forecast increases in demand, and $75.4 million to provide emergency accommodation for women and children escaping domestic violence.

 

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  • Increasing the instant asset write-off threshold to $30,000 and expanding access to businesses with an annual turnover of up to $50 million
  • Fast-tracking the company tax rate cut to 25% for small and medium‑sized companies with an annual turnover of less than $50 million by 2021-22
  • $1 billion over four years to extend funding for the ATO’s Tax Avoidance Taskforce, which targets multi-nationals, large public and private groups and high wealth individuals
  • Employers will be eligible for a $4,000 incentive payment under the Additional Identified Skills Shortage Payment. Apprentices will be eligible for $2,000, paid at key milestones in their apprenticeship
  • $30.7 million to pay compensation owed to small businesses from unpaid external dispute resolution determinations dating back to 1 January 2008.

 

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  • Increasing the instant asset write-off threshold to $30,000 and expanding access to businesses with an annual turnover of up to $50 million
  • Fast-tracking the company tax rate cut to 25% for small and medium‑sized companies with an annual turnover of less than $50 million by 2021-22
  • $1 billion over four years to extend funding for the ATO’s Tax Avoidance Taskforce, which targets multi-nationals, large public and private groups and high wealth individuals
  • Employers will be eligible for a $4,000 incentive payment under the Additional Identified Skills Shortage Payment. Apprentices will be eligible for $2,000, paid at key milestones in their apprenticeship
  • $30.7 million to pay compensation owed to small businesses from unpaid external dispute resolution determinations dating back to 1 January 2008.

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Some huge spending plans on infrastructure nationally with over $13 billion pledged in projects. WA set to receive $857 million on the four projects below.

Albany Ring Road $140 million
Bunbury Outer Ring Road $121 million
Tonkin Highway upgrades $348 million
Karratha to Tom Price corridor $248 million
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