Last night the Government handed down the 2019 Budget, proudly toting that the budget will be back in the black for the first time in 12 years.
So are you set to get a piece of the surplus cake?
Firstly, it's important to note that the surplus has not happened yet, it is currently a 'forecast' and a pre-election carrot to reassure Australians that this Government are sound fiscal managers and will deliver on what others have failed to do in recent history.
So who are some of the winners and losers of last nights budget?
> Taxpayers- the icing on the cake is $158 billion dollars in tax relief. This includes a low income tax offset which will provide between $255 - $1,080 in instant tax relief. The majority of Australian Taxpayers earning between $48,000 - $90,000 will receive the full tax relief amount of $1,080 ($2,160 for dual income families).
Also a future reduction and simplification of the tax system resulting in all taxpayers earning between $45,000 and $200,000 having their tax rate reduced from 32.5% to 30%. This means 94% of Australian Taxpayers will have a top marginal tax rate of 30%. For someone earning $200,000 this could save them up to $11,640 in annual tax.
> Small to Medium Businesses - a planned further reduction in the company tax rate to 25% to be brought forward 5 years. The instant asset write-off scheme is also increasing to $30,000 and being extended to medium sized businesses with a turnover of up to $50 mill. There is also 80,000 apprenticeships to be made available over 5 years.
> Retirees - 65 & 66 year olds will no longer be required to meet the work test to contribute to super and will be able to utilise the bring forward rule to contribute up to $300,000 in non-concessional contributions. Spouse contributions will also be extended so that they are available to be made up until the recipient is age 74 (currently its up to age 69).
> Mental Health and Cancer Sufferers - the Government has committed $97 billion dollars to the public health system. Including a $100 million to a Childhood Cancer Centre in Sydney. There is also $331 million allocated to listing more life saving pharmaceuticals on the PBS for cancer sufferers. $111 million is being provided to fund 30 new Headspace services to assist young people with mental health issues.
> Welfare Recipients - the Government wants to introduce new technology to reduce overpayments of welfare by streamlining data matching. Estimating a savings of $2.1 billion over the next 5 years.
> NDIS - Due to a slow roll out the NDIS unspent funds of $1.6 billion will be retained to improve the bottom line as opposed to invested in the scheme.
> Multinationals - an investment of $1 billion into the Tax Avoidance task force is estimated to bring in an additional $3.6 billion in tax revenue from multi-nationals and high net worth individuals.
> Foreign Doctors - reducing the number of foreign Doctors brought in and trained in Australia by 155 places is estimated to save $300 million over 4 years.
> ANTS! - We all know ants love cake but the Government is keen to eradicate the red fire ant who is damaging the Australian eco-system, bringing forward $20 million in funding for the cause.
For more information on how the budget may impact or benefit you or for advice on all things financial, get in touch with us today!