The 2019-2020 Federal Budgets sees the Government predicting a return to surplus of $7.1 billion.
The Government is lowering taxes and increasing spending, with a focus on low/middle income earners, small business, senior Australians and transport infrastructure.
You can download and read a copy of the official budget overview here.
A Quick Summary
- Immediate tax relief for low-income and middle-income earners of up to $1,080 for singles or up to $2,160 for dual income families to ease the cost of living.
- Lowering the 32.5 per cent rate to 30 per cent in 2024-25, increasing the reward for effort by ensuring a projected 94 per cent of taxpayers will face a marginal tax rate of no more than 30 per cent.
- A further $158 billion of tax relief, building on our already legislated Personal Income Tax Plan.
- Higher tax discount rates for unincorporated small businesses (up to $1,000).
- Fast-tracking lower company tax rates. The company tax rate for small and medium-sized companies with an annual turnover of less than $50 million has been lowered to 27.5 per cent. This rate will be lowered further to 25 per cent by 2021-22
If you'd like to know in more details how changes to tax will affect you, get in touch with your tax agent. You can also attend our Tax Planning Seminar in May, which will go into detail how you can get the most benefit from these tax changes.
Increasing instant asset write-off
- Increasing the instant asset write-off threshold to $30,000.
- Expanding access to medium-sized businesses with an annual turnover of less than $50 million to help them reinvest in their business, employ more workers and grow. Around 3.4 million businesses will be eligible to benefit.
Restoring trust in the financial system
The Government is providing more than $640 million to help restore trust in the financial sector, including:
- Over $400 million to ASIC to support its new enforcement and supervisory strategies and expanded remit
- Over $150 million to APRA to strengthen supervision and enforcement
- Over $35 million for a new criminal jurisdiction of the Federal Court.
The Government is increasing its infrastructure investment to $100 billion, busting congestion and ensuring our towns and regions are better connected
Fast rail plan
- $2 billion to help deliver fast rail from Geelong to Melbourne
- Establishing the National Faster Rail Agency
- Fast rail business cases for Sydney to Newcastle, Sydney to Wollongong, Sydney to Parkes (via Bathurst and Orange), Melbourne to Greater Shepparton, Melbourne to Albury Wodonga, Melbourne to Traralgon, Brisbane to the regions of Moreton Bay and the Sunshine Coast, and Brisbane to the Gold Coast
Major Projects Underway
- Melbourne to Brisbane Inland Rail $9.3 billion
- Western Sydney (Nancy-Bird Walton) International Airport $5.3 billion
- Melbourne Airport Rail Link $5 billion
Other Victorian Projects
- Suburban Roads Upgrades (South Eastern and Northern Roads) $1.1 billion
- South Geelong to Waurn Ponds Rail $700 million
- Western Highway (Final Stage of Duplication from Ararat to Stawell) $360 million
- Urban Congestion Fund $396 million
- Roads of Strategic Importance $490 million
Helping with power bills
The Government will provide $284 million for a one-off, income tax exempt payment to over 3.9 million Australians to assist with their next
power bills and cost of living expenses. The payment of $75 for singles and $125 for couples will be made to those eligible for certain
social security payments.
Snowy Hydro 2.0, Battery of the Nation and Marinus Link
The Government has committed to a $1.4 billion equity injection. The project will firm up intermittent renewable energy by bringing 2000 MW of new renewable pumped hydro capacity into the system that will provide up to
175 hours of storage which can meet the peak demand of up to 500,000 homes.
Partnering with the Tasmanian Government, the Federal Government is accelerating the Battery of the Nation and Marinus Link projects by providing $56 million for the Marinus Link interconnector.
Recurrent funding for schools will reach $19.9 billion in 2019, with average Commonwealth funding per student having increased from $3,755
in 2014 to $5,097 in 2019. By 2029, this funding will grow to $32.4 billion, an increase of
63 per cent.
All school sectors will benefit with increased funding for public, Independent and Catholic schools in every year.
The Government is providing $30.2 million in 2019-20 under the Local School Community Fund. This initiative will allow school communities to identify their own priorities, such as upgrades to classrooms, play equipment and other school amenities.
The Government will invest $453 million to extend support for the 2020 school year.
The Government is investing $17.7 billion in the university sector in 2019. This is projected to grow to more than $20 billion by 2024.
In this Budget, the Government is providing $93.7 million over four years from 2019-20 for scholarships for students to study at a regional campus of a university or vocational education training provider.
The Government is investing $282 million to support Australians who wish to stay at home for longer by providing an additional 10,000 home care packages across all levels.
The Government is making an additional 13,500 residential care places available from 2018-19 — the largest number ever in a single funding round. In addition, the Government is providing $60 million for residential care infrastructure.
The Government is providing a $320 million general subsidy boost in 2018-19 for residential aged care.
The Government is providing $1.5 million to develop a Serious Incident Response Scheme and $8.4 million to introduce mandatory reporting against national residential care quality indicators.
The Government has launched the National Plan to Respond to the Abuse of Older Australians, including $18 million to support frontline services, and a new National Hotline (1800 ELDERHelp or 1800 353 374).
Summary of Revenue and Spending