Federal Election 2019 Outcome – What it means for you

Promised personal TAX CUTS across a broad band of income mean you could benefit over a 10-year period. In the first instance, the Coalition’s plan is to simplify the taxation system.

• From 1 July 2019, if you earn up to $45,000, the 19 per cent tax rate bracket would apply (previously applicable up to $37,000), saving you up to $255 a year.
• From 1 July 2022, if you earn up to $120,000, the 32.5 per cent tax bracket would apply (previously applicable up to $90,000), saving you up to $1080 a year.
• From 1 July 2024, it is planned that if you earn up to $200,000, you would remain in the 32.5 per cent tax bracket. The 37 per cent tax bracket is intended to be fully removed.
• Overall, $158 billion was announced in the 2019 Budget to support tax relief over 10 years.

The Coalition announced as part of its 2019 Budget the expanded and improved INSTANT ASSET WRITE-OFF. Businesses with up to $50 million in turnover may write off business assets this financial year (previously applicable up to $10 million in turnover). Furthermore, the write-off threshold has increased to $30,000 (from $25,000).

Legislated in October 2018, the fast-tracked CORPORATE TAX payable by small and medium businesses with up to $50 million in turnover was reduced from 30 per cent to 27.5 per cent for income year 2019-20. The Coalition plans to reduce the tax rate to 26 per cent for income year 2020-21 and finally to 25 per cent by income year 2021-22 onwards, fast-tracked by five years.

If you’re in retirement, wondering about recent reports of losing your FRANKING CREDIT CASH REFUND ability, be assured the Coalition plans for you to continue to make your claims. In addition, if you make VOLUNTARY SUPERANNUATION CONTRIBUTIONS at aged 65 or 66, you will no longer need to meet the work test requiring you to work 40 hours in a 30-day period per annum.

From 1 January 2020, eligible first home buyers with a minimum five per cent deposit may be able to apply for a deposit loan through the Coalition’s proposed FIRST HOME LOAN DEPOSIT SCHEME, enabling 10,000 first home buyers to benefit by purchasing a home sooner than they might have.

Vocational education and training (VET) are cornerstones of a skilled workforce and the Coalition’s plan to spend $525 million – ‘Delivering Skills for Today and Tomorrow’ – on VET will benefit businesses by creating up to 80,000 NEW APPRENTICESHIPS with Skill Shortages payments of $4000 for eligible employers and $2000 for apprentices.

The Coalition will continue to deliver on its financial support commitment over 10 years for all primary and secondary, public and private schools under Gonski 2.0.

Are you in the business of exporting? If you are, the Coalition plans to increase Australia’s number of exporting businesses from 52,000 to 62,000 over the next three years through its proposed ‘Exporters’ Package’ providing additional funds, $60 million, to its EXPORT MARKET DEVELOPMENT GRANTS SCHEME.

In an effort to more robustly support employers, including in regional areas, the Coalition will bring in changes to visas for skilled migrant workers, commencing with a greater number of EMPLOYER SPONSORED SKILLED VISAS being granted to 39,000 (from 35,528) in 2019-20.

A new GLOBAL TALENT – INDEPENDENT PROGRAM commencing on 1 July 2019 will provide 5000 places within the 2019-20 migration program. The best-of-the-best skilled migrant workers will be eligible to apply.

If you’re an employer of WORKING HOLIDAY MAKERS, then from 1 July 2019, overseas visitors on a working holiday visa may have the option of a third year visa, providing they perform six months of specified work in regional areas. To attract people with more work experience, the Coalition has already lifted the eligible applicant age cap from 30 years to 35 years (Canada and Ireland only at this time).

Overall, a reduction in PERMANENT MIGRATION will see a new cap of approximately 160,000 migrants (down from 190,000) composed of 110,000 skilled migrant workers and 47,000 family members.

How can YML help?

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