Last night the Federal Government announced the budget for the coming year.
With an election imminent the budget centred on tax cuts and increased funding to healthcare, aged care services and infrastructure spending.
Some of the key announcements were :
- Income tax cuts focused on low to middle income earners which is mainly achieved by doubling the Low and Middle Income Tax Offset
- More generous tax stimulus for higher income earners starting in 2022 with an expansion in the 19% tax rate bracket and a reduction in the 32.5% rate to 30% in 2024
- The ability for people aged 65 and 66 to contribute to super without meeting the work test requirements
- An increase to the age limit for spouse superannuation contributions from 69 to 74 from 1 July 2020
- A one off income tax exempt energy assistance payment of $75 to $125 for pensioners
- Expansion of the small business asset write off and a drop in the small business company tax rate to 25% earlier than previously announced
- A significant increase to funding for health and aged care services and infrastructure spending
It is important to note that these announcements are only proposals at this stage and must be passed by Parliament before they are legislated, which won't happen before the election.
For more detail on the budget announcements please click the link below.
