2019 Federal Budget
Treasurer Josh Frydenberg's first Budget focuses on reducing the tax burden for the majority of working Australians, greater superannuation flexibility for retirees and a one off energy relief payment for eligible income support recipients.
Note: These changes are proposals only and may or may not be made law
Personal Tax Savings
Immediate Tax Relief
Low and middle income earners will receive a tax saving of up to $1,080 per person that can be claimed in the 2018/19 tax return.
Tax Relief for Low and Middle Income Earners
From 1 July 2022, the 19 per cent tax bracket will increase to $45,000, with an increase in the low income tax offset from $645 to $700.
Reduction in Key Marginal Tax Rate
From 1 July 2024, the current 32.5 per cent marginal tax rate will drop to 30 per cent for income between $45,000 and $200,000.
Pensioners and Welfare Recipients
Energy Assistance Payment
Eligible Australians will automatically receive a one off payment of $75 for singles and $125 for couples (combined) to assist with their energy bills.
Changes to Voluntary Super Contributions
Australians ages 65 and 66 will be able to make voluntary super contributions without having to meet the Work Test.
Increasing Age Limit for Spouse Contributions
The age limit for people to receive contributions made by their spouse on their behalf increases from 69 to 74 years.
Extended Access to Bring-Forward Arrangements
People aged 66 and under will now be able to make three years' worth of non-concessional contributions to their super in a single year, capped at $100,000 a year.
Small to Medium Business
Small Business Increase in instant asset write-off
The threshold for the instant asset write-off increases to $30,000 from $20,000. It has also been broadened to include businesses with up to $50 million in turnover.