1300 GRIMA TAX (1300 474 628) emma@grimaaccounting.com.au

Budget in a Snapshot – 2019

Apr, 2019

Budget Highlights April 2019 (proposed but not legislated)

Individuals

  • Increase to the Low and Middle Income Tax Offset (LAMITO) from 1/7/2018 of up to $1,080 non-refundable offset for taxpayers less than $90,000
  • Changes to personal tax rates from 1/7/2022, to increase 19% threshold from $37,000 to $45,000, then increase upper threshold for 32.5% tax bracket from $90,000 to $120,000.
  • Low Income Tax Offset Remains but will be replaced by 1/7/2022
  • Medicare levy low income thresholds increased for singles and families.
  • Extending compliance activities targeting individual taxpayers and tax agents particularly work related expenses and rental properties.

 Small Business

  • Increasing and expanding small business $25,000 immediate write off to $30,000 up to 30/6/2020.

This was changed from $20,000 to $25,000 on 29th Jan 2019.

TIP This means you can utilise this threshold for TWO more tax years ie 2019 and 2020.   The business must have turnover of under $10 million to access such concessions.

From 1st July 2020, it will revert back to $1,000 immediate deduction

  • Single Touch Payroll – expanded to government/welfare agencies

Superannuation

  • Removal of the work test , From 1st July, 2020 no work test required for those aged 65 and 66 in that year only with limited work test exemption for recent retirees to voluntary contribute.
  • Bring forward rule for those age 65 and 66 at current to make voluntary non – concessional contributions over 3 years
  • Increase age limit for spouse contributions – At current it is 70 to increase to 74 years of age. Currently those over 70 cant receive spouse contributions
  • Delay in start of insurance opt in –  to apply from 1st Oct 2019, to ensure insurances within superannuation is only offered on an opt in basis for account balances less then $6,000.

What we can do for you?

At Grima Accounting & Taxation, we like to provide solutions made simple. If you are unsure of your current tax position and want help before its too late. Please contact us at emma@grimaaccounting.com.au or visit https://calendly.com/grima to make an appointment.

This newsletter is for general information only. The articles should not be relied upon without professional advice. Contact my office for further information. Liability limited by a scheme approved under Professional Standards Legislation

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