Measures and start dates at a glance
Return to surplus
The jewel in the Government’s crown is the $7.1bn budget surplus in 2019-20. The Budget sets out:
- $11bn surplus in 2020-21
- $17.8bn in 2021-22
- $9.2bn in 2022-23
leading to the elimination of Government debt by 2029-30.
Growth in trading partners uncertain
The Budget notes continuing “uncertainties” around trade tensions, emerging market debt vulnerabilities and geopolitical issues.
With total trade covered by free trade agreements rising from around 26% to around 70% in the last 5 ½ years, you can see why there has been a flurry of activity to formalise trade terms with our regional and international partners.
Domestic growth solid but tempered
Australia’s economy is forecast to grow by 2¾% in 2019-20 and 2020-21. Jobs growth and economic stability is tempered by severe weather events and an anticipated decline in residential construction activity and house prices.
| Budget measure | Start date |
| Individuals | |
| Extending Family Tax Benefit to ABSTUDY recipients aged 16 and over who study away from home | 2018-19 |
| Increasing the Medicare levy low-income thresholds | From the 2018–19 income year |
| Building on the Personal Income Tax Plan | 1 July 2022 1 July 2024 |
| Deductions | |
| Increasing and expanding access to the instant asset write-off Read more | Application: From 7.30pm (AEDT) on 2 April 2019 until 30 June 2020 |
| Philanthropy – Extending deductible gift recipient status to Men’s Sheds and Women’s Sheds | 1 July 2020 |
| Small Business | |
| North Queensland Flood Recovery Package – Tax treatment of qualifying grants | Qualifying grants made on or after 25 January 2019 |
| Queensland storms – Tax treatment of payments to primary producers | Eligible payments made from October 2018 |
| Companies | |
| Delayed start date to allow further consultation on Division 7A amendments | 1 July 2020 |
| Tax exempt entities | |
| Philanthropy – updates to the list of specifically listed deductible gift recipients | 1 July 2019 |
| Compliance | |
| Black Economy – Strengthening the Australian Business Number System | 1 July 2021 — income tax lodgment 1 July 2022 — annual confirmation |
| More funding for the ATO Tax Avoidance Taskforce | Funding over four years from 2019–20 |
| Addressing sham contracting Read more | From 2019-20 |
| Tax Integrity – Increasing engagement and on-time payment of tax and superannuation liabilities | Not specified |
| Other taxes | |
| Luxury car tax – Increased refunds for eligible primary producers and tourism operators | Vehicles acquired on or after 1 July 2019 |
| Related laws | |
| Social Security one-off energy assistance payment Read more | Applicable to residents in Australia who are eligible for qualifying payments on 2 April 2019 |
| Single Touch Payroll | |
| Single Touch Payroll expansion | 1 July 2020 |
There are currently 122 bills before Parliament; 79 bills are not proceeding. Depending on the outcome of the impending Federal election, many more bills will not proceed.
If we can assist with any additional information, please contact the Carrick Aland team in Dalby, Toowoomba or Chinchilla on 07 4669 9800.
First published on 3 April 2019 – https://taxbanter.com.au/wp-content/uploads/2019/04/Federal-Budget-2019-20.pdf?utm_source=The+Assessment&utm_campaign=5cfd6307dd-2017_18_FedGov_Budget_summary_COPY_01&utm_medium=email&utm_term=0_4ef5882f06-5cfd6307dd-380161973
