Small Business

  • Instant asset write off threshold increased from $25,000 to $30,000 per eligible asset. Eligibility also expanded to include medium-sized business with a turnover of up to $50 million per annum. This is effective from Budget night (2 April 2019) until 30 June 2020.

Personal Income Tax

  • Low and Middle-Income Tax Offset (LMITO) increased from $530 to $1,080 per year. This change is effective immediately for the 2019 financial year and will remain in place until 2022. The LMITO will be provided in addition to the Low Income Tax Offset (LITO).
  • From 1 July 2022, the 19% tax bracket will increase from $37,000 to $45,000, and the 32.5% tax bracket will increase from $90,000 to $120,000.
  • From 1 July 2024 the 32.5% tax rate will reduce to 30% and will increase from $120,000 to $200,000. This will effectively remove the 37% tax rate, with incomes over $200,000 being taxed at 45%.
  • Medicare levy for low-income thresholds for singles, families, seniors and pensioners will be increased from the 2018/19 financial year.
  • One-off energy assistance payment of $75 for singles and $125 per couple who are eligible for ‘qualifying payments’ as of Budget night (2 April 2019) and Australian residents for tax purposes. The payment will be exempt from income tax and will be made automatically before 30 June 2019.

Superannuation

  • From 1 July 2020, the age threshold for making voluntary super contributions without the need to meet the “work test” will be increased from 65 to 67. Under SIS regulations, the work test requires an individual to work at least 40 hours over a 30 consecutive day period for gain or reward.
  • From 1 July 2020, the three year ‘bring forward’ rule for non-concessional (after tax) contributions will also be extended for those aged under 67. It is important to note that individuals who are 66 on 1 July 2020 will be eligible to bring-forward contributions even if they are turning 67 during the 2020/21 financial year.
  • From 1 July 2020, the government are increasing the spouse contributions age limit from 69 to 74 years of age. Currently, those individuals aged 70 years and over cannot receive contributions made by another person on their behalf.

Tax Integrity Measures

  • Currently, anyone with an Australian Business Number (ABN) can continue to hold one even if they are not up to date with tax obligations. However, the government announced it will be targeting the misuse of the ABN system under two measures:
    • From 1 July 2021, ABN holders with an income tax return obligation will be required to lodge their income tax return.
    • From 1 July 2022, ABN holders will be required to confirm the accuracy of their details on the Australian Business Register on an annual basis.