Australian Federal Budget 2019-20: CA ANZ reacts
The Coalition has unveiled Australia’s first budget surplus in a decade, and tax breaks to entice voters as an election looms.
In Brief
- The 2019 Budget shows that tax will be a key battleground in the looming election.
- Along with the headline $7.1 billion surplus in 2019-20, A$158 billion of personal income tax cuts are promised over a decade.
- The instant asset write-off threshold is boosted to $30,000 from Budget night.
By Sally Rose
Australia’s 2019 Budget seeks to position the Coalition government as the economic manager Australians can trust and includes the biggest personal tax cuts since the Howard years.
That is the headline reaction from the policy team at Chartered Accountants Australia and New Zealand in response to the Australian Federal Budget 2019-20.
“The Coalition handed down a pre-election budget promising A$158 billion of personal income tax cuts over a decade, small business tax concessions and large infrastructure spending aimed at easing congestion in cities,” writes CA ANZ tax leader for Australia Michael Croker CA. “The Budget ensures tax will be a key battleground in the May 2019 federal election.”
The opposition Australian Labor Party has already announced its own ambitious tax agenda if it wins government, meaning CAs in practice will have plenty of talking points with clients over the coming months.
“The Budget ensures tax will be a key battleground in the May 2019 federal election.”
Key wins in the budget highlighted by CA ANZ include:
- Forecast surplus of A$7.1 billion in 2019-20
- 'Enhanced' personal income tax cuts for low and middle-income earners in 2019 tax returns.
- A boost to the instant asset write-off threshold for small to medium enterprises to $30,000 from Budget night. And more measures to target the ‘black economy’.
CA ANZ has also welcomed a decision to make the capital gains tax (CGT) exemption for merging superannuation funds permanent. This is a policy CA ANZ has been actively advocating for over many years.
Figure 1. Australian Federal Budget 2019/20 infographic. Click image to enlarge.
