On 2 April 2019, the Treasurer of Australia, Josh Frydenberg, announced the 2019-2020 Federal Budget. Highlights include personal tax reductions for low- and middle-income earners, the extension of the instant assets write-off to more businesses, superannuation and social security measures to assist older Australians, and a strengthening of the ABN rules.
There are no changes to personal income tax rates and thresholds in the 2017-2018 Budget, and there will be relief from the 2% Budget deficit levy, as anticipated, from 30 June 2017. On the other hand, the Medicare levy will be increased to 2.5% from 1 July 2019. There were changes for people repaying HELP debts for higher education, and the unexpected token of a small, one-off payment to pensioners.
Perhaps the most significant initiatives contained in the Budget are the housing affordability measures, a comprehensive approach which includes assisting first home buyers to build a deposit inside superannuation and allowing older Australians to contribute downsizing proceeds into superannuation.
Here is an outline of changes in the 2017-2018 as relevant to individuals:
The big news on 12 May was the government handing down their second budget. There have been some significant changes announced in the budget and it’s important to understand how these changes will affect you. There wasn’t a lot of tax reform in the budget because of the government’s forthcoming White Paper on Tax Reform, which is considering a number of different aspects of the taxation system in terms of fairness, complexity and how it can be improved. The White Paper on Tax Reform will not be completed quickly. However, it will most likely form the government’s policies leading into the next election.
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