2019/20 Budget Update
The Federal Election called for 18 May 2019, and the Governor-General has ‘prorogued’ the Parliament from 11 April until 18 May 2019 and dissolved the House of Representatives.
The election will also be for half the Senate.
As a result, all outstanding Bills have also lapsed (so any measures not yet passed will need to be reintroduced in new Bills after the election if they are to become law).
The Government handed down the 2019/20 Federal Budget on 2 April 2019
Some of the important proposals include:
- Increasing and expanding access to the instant asset write-off from 7:30 pm (AEDT) on 2 April 2019 (i.e., ‘Budget night’) until 30 June 2020, as follows:
- Increasing the instant asset write-off threshold from $25,000 to $30,000.
- Making the instant asset write-off available to medium-sized businesses (with aggregated annual turnover of $10 million or more, but less than $50 million).
NB: The legislation to make the above changes to the instant asset write-off has already been passed and received Royal Assent.
- Allowing individuals aged 65 and 66 years to:
- make voluntary superannuation contributions (both concessional and non-concessional) without meeting the work test from 1 July 2020; and
- make up to three years of non-concessional contributions under the bring-forward rule (without satisfying the work test).
- Increasing the upper threshold of the 19% personal income tax bracket to $45,000 from 1 July 2022, and reducing the 32.5% marginal tax rate to 30% from 1 July 2024 (in addition to changes already legislated).
- Increasing the Low and Middle Income Tax Offset (‘LAMITO’), with effect from the 2019 income year, to provide tax relief of up to $1,080 per annum, as well as an increased base amount of $255 per annum.
New industries entering the taxable payments reporting system
The ATO has reminded businesses that provide road freight, information technology (‘IT’), security, investigation, or surveillance services that they need to lodge a Taxable payments annual report (‘TPAR’) each year to tell the ATO about the payments they make to contractors who use an Australian business number (‘ABN’) (even if these services are only part of their business activities).
Such clients’ first TPAR will be due by 28 August 2020 for payments made from 1 July 2019 to 30 June 2020.
The Business Accountants at Omnis Group on Perth can help with the lodgment of this report, but affected clients will need to keep records of the payments made to contractors. The required information, including the contractor’s ABN, name, address, and total amounts paid during the financial year (including GST) will normally be contained in the invoices received from the contractors. Contact us in Subiaco today on 08 9380 3555.