The dust has settled on the Budget - what do you need to know
The recent budget release has stirred up quite the commotion as per usual. Below is a summary of what was included. It’s important to note that all the provisions in the budget will not be enacted immediately and are likely to be dependent upon a coalition election victory.
Instant asset write-off: From 2 April 2019 to 30 June 2020, company taxpayers will be able to claim an immediate deduction for assets up to $30,000.00 ($29,999.99). This will also be available for medium sized businesses (10mil to 50mil). Although medium sized businesses are granted this write-off, they still won’t have access to low value pools. This is a great change with more taxpayers having access to this instant write off. This has now been passed through parliament.
Luxury vehicle tax: Amending luxury car tax refund arrangements – primary producers and tourism operators will be able to apply for a refund of any luxury car tax paid up to a maximum of $10k. Currently this arrangement has a maximum claim of only $3k.
North Queensland flood recovery package – income tax exemption for qualifying grants made to primary producers, small business and Non – For – Profits (NFP’s).
Concessional Treatment for forced sale of livestock under FHA – farm household allowance (FHA) – Income from forced sale of livestock will be exempt from FHA income test calculations when this income is invested in a farm management deposit.
Division 7A amendment changes pushed back a year – Previously announced changes will be pushed back from starting to July 2020.
True contractors or employees? Plans to invest increased funds to Fair Work Ombudsman to investigate whether employers are pushing the boundaries on whether their contractors are in fact employees. It’s important to be aware of the crack down on this.
Super contributions later in life – to better align the superannuation age requirements with the Aged Pension changes will see 65-66 year old’s able to contribute to super without meeting the work test, including being able to use the bring forward rules. Currently people aged 65-74 can only make voluntary contributions if the satisfy work test (employed 40hrs for a period no more than 30 consecutive days).
New tax offset increased – The previously announced Low to Medium Income Tax Offset (LMITO) has been increased from a maximum of $530 to $1,080. Those with incomes of between $48,001 and $90,000 will see the full benefit, with reduced benefits up to $126,000 (see below table for further details). This is available for the 2019 financial year, so some added incentive for anyone applicable to get their tax work ready in July and August 2019.
If you have any questions about these measures please do not hesitate to call our office.
Just a reminder that tax planning is in full swing and if you have not been contacted for this yet and wish to have this completed please call Kirsty Ware in our office on 0267361145 so we can obtain all we need to get this actioned and advise you what you need to attend to prior to 30 June.