Important Facts on the 2019 Federal Budget

All kinds of changes, investments and new projects have been introduced through the 2019 budget, promising improvement across a wide range of sectors.

It’s our job to stay on top of these things, as experienced accountants and business advisors in Perth.

Of course, our real passion is helping you achieve your business and financial goals, so we take it upon ourselves to make sure you also stay on top of business and market changes.

So, let’s get stuck into the 2019 budget, and how it’s going to affect all Australians out there.

Watch the video below to learn about changes such as;

• Tax reductions for low-middle income, and small businesses
• Increased funding for cancer treatment and aged care
• Investments into reducing Australia’s carbon emission
• 25 million new jobs and improving wages for workers
• $100 billion invested into improving infrastructure and reducing congestion
• A new drought assistance program, disaster fund and hydroelectric dam
• Record funding for education of students of all ages

Tax Relief

Major tax relief headlines this year’s budget. In a move predicted in light of the coming election, lower and middle-income Australians will enjoy an immediate tax relief. Those in the $48,000 to $90,000 tax bracket will receive full tax relief of $1080, earners between $37,001 and $47,999 will see between $255 and $1080 in relief, while those in brackets up to $37,000 will receive up to $255 of tax relief. These benefits affect over 10 million Australians in total. Small businesses are also getting a boost this year in the form of an increase in the instant asset write-off threshold to $30,000. Access to this write-off will include medium-sized businesses with turnover of less than $50 million.

Not sure how to take advantage of these changes, or if you’re even eligible? Our Tax and Accounting packages can help with that. You can also check out our more detailed breakdown on the changes here.

Upcoming Key Dates

April 2019

21 April
Lodge and pay quarter 3, 2018–19 PAYG instalment activity statement for head companies of consolidated groups.

Lodge and pay March 2019 monthly business activity statement.

28 April
Lodge and pay quarter 3, 2018–19 activity statement if lodging by paper.

Pay quarter 3, 2018–19 instalment notice (form R, S or T). Lodge the notice only if you are varying the instalment amount.

Make super guarantee contributions for quarter 3, 2018–19 to the funds by this date.
Employers who do not pay minimum super contributions for quarter 3 by this date must pay the super guarantee charge and lodge a Superannuation guarantee charge statement – quarterly (NAT 9599) by 28 May 2019.
Note: The super guarantee charge is not tax deductible.

30 April
Lodge TFN report for closely held trusts if any beneficiary quoted their TFN to a trustee in quarter 3, 2018–19.

Lodge lost members report for the period 1 July 2018 to 31 December 2018.

May 2019

15 May
Lodge 2018 tax returns for all entities that did not have to lodge earlier (including all remaining consolidated groups), and are not eligible for the 5 June 2019 concession.

Due date for companies and super funds to pay if required.
Note: Individuals and trusts in this category pay as advised on their notice of assessment.

21 May
Lodge and pay April 2019 monthly business activity statement.

Final date to add new FBT clients to your client list to ensure they receive the lodgement and payment concessions for their fringe benefits tax returns.

Lodge and pay Fringe benefits tax annual return if lodging by paper.

26 May
Lodge and pay eligible quarter 3, 2018–19 activity statements if you lodge electronically.

28 May
Pay Fringe benefits tax annual return if lodging electronically.

Lodge and pay quarter 3, 2018–19 Superannuation guarantee charge statement – quarterly (NAT 9599) if the employer did not pay enough contributions on time.
Employers who lodge a Superannuation guarantee charge statement – quarterly can choose to offset contributions they paid late to a fund against their super guarantee charge for the quarter. They still have to pay the remaining super guarantee charge.
Note: The super guarantee charge is not tax deductible.

Health 

The budget includes an increase in spending on healthcare, with a total of $81.8 billion to be spent in the 2019/2020 financial year, and $89.5 billion across 2022 to 2023. Starting July 1, 2020, the Government is providing $199 million towards diagnostic imaging items, reducing out-of-pocket expenses for patients. The Pharmaceutical Benefits Scheme will get $331 million for medicines to treat a variety of cancers. This budget also sees a significant increase in funding for the aged care sector, a record funding of $21.6 billion in 2019-2020. $5.9 billion will be spread over the course of two years to support the Commonwealth Home Support Programme, which provides essential services like Meals on Wheels.

Getting ready to retire, or struggling to get your finances organized to look after an aging loved one? Why not look into our financial planning services.

Climate

$3.5 billion has also been earmarked for the Climate Solutions package – aimed at ensuring Australia meets its emissions reduction target in partnership with Indigenous communities, small businesses, and farmers. This new injection of funds will go towards Australia’s emissions reductions, in line with promises made in the Kyoto agreement. With the Climate Solutions Fund, carbon emissions across Australia should be reduced to 65% of 2005 levels by 2030.

Finance

The new budget promises the creation of 1.25 million jobs over the next 5 years. In addition, the budget includes measures aimed to boost worker wages, a welcome development during national and global economic slowdown. An increase in infrastructural and environmental projects is the main source of new jobs. Meanwhile, financial regulators ASIC and APRA will receive $550 million in response to the royal banking commission fallout, in order to address misconduct. APRA funding will continue to increase through 2023.

Not sure what to make of these changes, or how to take advantage of them? Our business advisors may be able to help.

 

Transport

A record $100 billion is being is spent in our highways, roads, railways and airports over the next ten years. The government aims to alleviate traffic woes with a 4 billion investment into the traffic congestion fund, this will go towards targeting traffic in highly affected urban areas across the country. The budget reaffirms the recent announcement of $2 billion of infrastructure money to be put towards a fast train service between Melbourne and Geelong in Victoria, this new link will this new line will cut the average commute in half as the train will make the trip in 32 minutes.

Hopefully all these ongoing projects will help in creating work and rectifying problems for the construction industry.

 

Infrastructure

The government has given the greenlight to the snowy 2.0 project by providing a $1.4 billion equity injection. Snowy 2.0 will add over 2000 megawatts of energy generation, linking two existing snowy scheme hydroelectricity dams. The project will firm up intermittent renewable energy and provide storage which can meet the peak demand of up to 500,000 homes. The government is providing $6.3 billion in drought assistance in concessional loans for farmers and farming communities. The government is also creating a new 3.9-billion-dollar emergency response fund to provide a sustainable source of funding to respond to natural disasters in the future

 

Education

This year’s budget includes a record amount of funding for schools and students. The government has committed $292 billion in total school recurrent funding from 2019 to 2029. Including an extension on the national partnership agreement for universal access to early childhood education until the end of 2020 for a total of $453 million dollars. The government will also put $17.7 billion towards the university sector in 2019 a record high. In this budget the government is providing $93.4 million over 4 years, starting 2019/2020 for students to study at a regional campus of a university or vocational education provider.