This year’s budget announcement last night (2nd April 2019) was definitely set towards re-election. With exception for the increased investment in infrastructure, it’s a ‘safe’ budget.
We do however need to note – none of the budget announcements have been set in stone (i.e. legislated). This is because of the ever present threat of election announcement and the imminent care-taker mode in effect until the election is finalised. We have 6 weeks ahead to see what will truly happen.
In essence, the below is the highlights (in order of excitement) for business:
WHAT DOES IT MEAN FOR BUSINESS?
- Instant asset write off extended and increased (again) to $30,000 for businesses with turnover up to $50,000,000 turnover. This means you can buy a piece of equipment up to the value of $30,000 + GST and claim it 100% in your business tax return. See our video here on how it works.
- Company Tax Rate for small business will reduce to 25% by 1st July 2024. This means more money will stay in your business pockets allowing you to reinvest into the business for growth.
- Individual Income Tax Rebates will see a once off rebate for individuals up to $1,020 per person on the completion of their 2019 Tax Return. This means it’s important for you to get your tax returns completed on time (before 31 October 2019).
- Single Touch Payroll (STP) that is coming into effect for all business effective 1 July 2019 will also mean employees on Centrelink benefits will be cross referenced to your STP data. This will mean that reporting of wages to Centrelink will also become automated.
- Individual Income Tax Rates being reduced at the higher end over the next 5 years – so that the average rate of tax for individuals will be significantly reduced.
- Federal Government Contracts payment terms to small business on 7 day invoices. This will significantly improve cashflows for small business
- Pharmacies will see higher rebates on medication – reducing the cost to patients.