Treasurer Josh Frydenberg delivered his maiden budget for 2019-20 on Tuesday night, potentially a few weeks before the Federal Election takes place in early or mid-May this year.
One of the headlines from the announcement is the forecast of an estimated $7.1 billion surplus, which will be the first time the budget has returned “back in black” since 2007-8. But let’s not get too excited as that is a ‘forecast’ of a surplus and not a delivery of one; we are currently sitting on a $4.2 billion deficit.
Here’s a recap on the major proposed changes, some of which Darren discusses in his Budget 2019-20 video.
Tax Cuts
For those earning less than $126k, up to $1080 could be back in your pocket after 1 July 2019. This is of course, subject to Parliament legislating the proposal after the election.
Further down the track, the Morrison government is promising to lower the 32.5% tax bracket rate to 30% by 2024, but this can only take place if they win the next two elections.
Superannuation
From 1 July 2020, Australians aged 65 to 67 will be able to make voluntary super contributions without having to pass the Work Test (a requirement to work min. 40 hours within a month).
Presently, those over 70 years of age can’t receive contributions made by someone else on their behalf, but the government intends to increase the age limit for spousal contributions to 74.
Energy Assistance Payment
Pensioners will receive a one-off energy assistance payment of $75 for singles and $125 for couples.
Health
Matching what Labour promised to do, the government will end the indexation on Medicare rebates a year earlier than originally planned.
The Pharmaceuticals Benefits Scheme will also be added with new drugs including cancer drugs for Leukemia.
The government is also investing half a billion dollars in mental health and suicide prevention.
Infrastructure
The government is spending a record $100 billion over 10 years into infrastructure projects across Australia.
The Treasurer announced he was quadrupling the funds from $1 billion to $4 billion for the ‘urban congestion fund’.
What Can Align Financial Do For You? Visit our homepage to learn more about our service. If you would like to speak to us about your financial circumstance, please feel free to give us a call on 02 9913 9995. We are located in Narrabeen on the Northern Beaches of Sydney.
Disclaimer: This post has been prepared for general information purposes only. It is not specific advice to any particular person. You should consult an authorised Align Financial adviser before making financial decisions. Align Financial | Financial Planner Northern Beaches | Servicing North Narrabeen, Narrabeen, Mona Vale, Elanora Heights, Newport, Avalon, Palm Beach | Enquire with us online.