On 2 April 2019, the treasurer, Josh Frydenberg, delivered his first Federal Budget of the Morrison Government. Being that this is also a pre-election Budget, the proposed measures may very well change in the coming months prior to and after the Federal election.
The previously proposed (and legislated) low and middle income tax offset (LMITO) will now be increased from a maximum amount of $530 to $1,080 a year effective from the current year for taxable income less than $90,000. You get part of the offset up to taxable income of $126,000.
The LMITO will be received on assessment after you lodge your 2019 income tax return.
From Budget night to 30 June 2020, the instant asset write-off threshold will be increased from $25,000 to $30,000.
The threshold applies on a per asset basis. As a result, eligible businesses can instantly write off multiple assets costing less than $30,000 that are first used, or installed ready for use, from Budget night to 30 June 2020.
The instant asset write off will also be expanded to apply to both “small businesses” (those with an aggregated annual turnover of less than $10 million) and medium sized businesses (an aggregated annual turnover of $10 million or more, but less than $50 million).
The government will provide relief to farmers and tourism operators by amending the luxury car tax refund arrangements.
For vehicles acquired on or after 1 July 2019, eligible primary producers and tourism operators will be able to apply for a refund of any luxury car tax paid, up to a maximum of $10,000.
From 1 July 2020, the current superannuation work test will be removed for people aged 65 and 66. The proposed measure will allow individuals to make these contributions to superannuation even if they are not working.
From 1 July 2020, the bring-forward cap will be extended to taxpayers aged 65 and 66. Under current rules the age requirement is taxpayers aged less than 65. Under the bring forward rule, people aged 65 and 66 will also be able to make up to 3 years’ worth of non-concessional contributions, capped at $100,000, to superannuation in a single year (subject to amount of funds in superannuation).
This article is compiled as a helpful guide for your private information and is subject to copyright. We suggest that you do not act solely on the basis of material contained in this article because items are of general nature only and may be liable to misinterpretation in particular circumstances. We recommend that our advice be sought before acting on any of these crucial areas.