Budget 2019 - The Election sweetener is out!
Budget 2019 - personal tax cuts and more tax benefits for small business. Hooray!
Let us rejoice my friends!
The tax cuts for middle income Australians are coming. Small business tax benefits are here for another year. Here are the changes that you will need to know about whether you are an employee or a small business owner:
More Money in Your Pocket
The new tax offset of $1080 will apply for low & middle income earners mainly on incomes between $48000 and up to $90,000. For those on incomes between $90,001 and $126,000 the $1080 tax offset will be reduced by 3% above $90,000.
Expect a bigger tax refund when you lodge your 2019 tax return. Get ready to send your 2019 tax papers in July!
Business Income Tax Changes
The current instant asset write off will increase from $20,000 to $30,000 for business with aggregated turnover of up to $50 million and from $25,000 (since 29 January 2019) to $30,000 for businesses with aggregated turnover of less than $10 million.
The $30,000 instant asset write off will apply from 2nd April 2019 to 30th June 2020.
For our small business clients, we will discuss how your business can benefit from the instant asset write off at our tax planning meetings in the coming weeks. I am looking forward to our meetings this year!
From 1st July 2020, individuals aged 65 and 66 will be able to make voluntary concessional (up to $25,000/year) and non-concessional contributions (up to $100,000/year), without meeting the work test. This will enable those nearing retirement to increase their superannuation balances even if they are already retired but are under 67 years of age.
The age limit for spouse contributions will increase from 69 to 74 years. This strategy will work well for those who need to reduce their super balance below $1.6 million threshold and save 15% in tax.
It looks like there's an election coming. The sweeteners are out!