This is a Budget not only designed to showcase the return to surplus (and by default the Government’s economic credentials) but engage voters with initiatives to make them feel like they are more prosperous. A massive infrastructure spend adds to this sentiment.
The Government has also stated that it will keep taxes as a share of GDP within the 23.9% cap.
All measures, of course, are reliant on the relevant legislation passing Parliament which is by no means a given with an election looming.
Budget 2019-20 Highlights:
Personal tax cuts - $19.5bn package of personal income tax cuts
Small business - Instant asset write-off increased to $30k and expanded to businesses under $50m
Infrastructure - $100bn in infrastructure projects across all States and Territories
Regulators - $1bn ATO task force funding targeting multi-nationals and high net worth individuals
What is missing from the Budget is any word or statement on the previously announced measures that would deny non-residents access to the CGT main residence exemption. Shadow Treasurer Chris Bowen recently released a media release calling on the Government to drop the “unfair ex-pat CGT changes.” So, unless the Government returns from the election with a majority, these changes will not come to fruition.
If we can assist with any additional information, please contact your Merit Wealth Adviser.
Budget 2019-20 Highlights include... Download the Merit Wealth 2019 Budget Summary