Apr 17

Budget Summary 2019

Posted by Peter Marmara-Stewart at Wednesday, April 17, 2019

We are not going to give you a traditional Budget Summary due to the Federal Election, and the uncertainty with a lot that was proposed. We will just let you know what is likely to be, and what is likely not to be.

We can confirm that the instant asset write-off of $30,000 passed parliament, and is now law. This means, small and medium-sized businesses can instantly write off assets purchased under $30,000.

Both sides have committed to the Low and Middle Income Tax Offset, with Labor vowing to deepen the tax rebate and cut to lower income earners even more so. Labor hasn’t really changed its stance on its policies, still wanting to remove Franking Credit refunds for this financial year, and remove negative gearing effective 1st July 2020. Whether or not Labor can do this, even if they win the next election, remains unclear.

Anyone attempting to build wealth in this country will be worse off, if Labor wins the next election.

The coalition did announce a reduction and flattening of tax rates over the next several years in the budget, so that, there will be only 3 rates: 19%, 30% (up to $200,000) and 45%. Labor have said that they will not support this.

Of course, until it is passed into legislation, it isn’t so.

On a final note, we thought you may appreciate this great chart (courtesy of Cuff Links), showing the Federal Government’s deficit and debt position since 1901. The upper section shows revenues (green line) and expenses (red). The middle section shows the resultant annual surpluses (green bars – look hard!), or deficits (red bars). The purple bars in the lower section shows the level of Federal Government debt. All are expressed relative to total national output (GDP) each year (click on chart for larger image):