2019 Budget Summary

On Tuesday the 2nd of April the Treasurer, Josh Frydenberg, handed down his first budget.

This article outlines the proposals contained in last night’s budget. We ask that you read through the proposed changes as they may directly impact your situation.

The key take outs of the 2019 Budget were as follows:

  • The Budget is expected to go back into Surplus in the FY20 Financial Year to the tune of an estimated $7.1 billion
  • Immediate tax cuts for low-to-middle income earners and lowering of the 32.5% tax rate to 30% from 1 July 2024.
  • A One-Off Energy Assistance Payment for Social Security recipients to be received by the end of the current financial year. The payment will be $75 for singles and $125 for couples combined and will be exempt from income tax.
  • The ability for people aged 65 and 66 to contribute to Super without meeting the work test requirements from 1 July 2020, to align with the increase in the Age Pension age.
  • An increase to the age limit for spouse contributions from 69 to 74, from 1 July 2020
  • An increase in funding to Health and Aged Care services

These changes may be significant to your situation and may warrant further discussion. Feel free to contact our office to discuss any of the proposals in further detail.

JBS Views & Planning Opportunities

We feel that some of the changes in the budget helps reiterate the importance of obtaining ongoing advice and continuing to review your situation to ensure that you are structured appropriately and are positioned well for the future. Here are some things to consider:

  • The income tax cuts may increase your surplus income and this may present an opportune time to decide how best to allocate these additional funds.
  • Although not coming into effect until 1 July 2020, if you are 65 or 66, you may have the opportunity to further build your wealth for retirement and take advantage of the expected changes to the contribution rules.

Please click here for a full detailed report on the above and other changes as announced.

We note that all measures outlined in this article are proposals only, each of the proposals must still pass parliament before they’re legislated. Given it is an election year, if there is a change of government these policies may change. The Labor government will be providing their Budget reply this Thursday, which will provide an insight into which policies outlined below they will keep, alter or not implement.

Comments ( 0 ) Share