With an election looming in the coming weeks the 2019 budget is up in the air. The Coalition have certainly pulled out all stops in offering a number of incentives but if they don’t win the election you aren’t going to see any of what has been promised. So will this budget help the Liberal Party get over the line or is it little too late?
Here is how the budget is going to affect you.
1. Surplus or deficit?
It was hoped that the coalition would deliver a surplus by the end of this financial year. This hasn’t been the case and we will end with a projected $4.2 billion deficit. However, their new budget forecasts a surplus over the coming years with an estimate reaching as high as $17.7 billion in 2021-22. Of course this is only an estimate and we are yet to see this happen.
2. Tax cuts
For those earning up to $126,000 this tax year will see the tax offset doubled. This will mean $1,080 back at tax time for these people. This is in line with what Labor has promised, so no matter who wins the election most Australian’s will get more money back at tax time.
There are some longer term tax cuts such as flattening the tax brackets by 2024. This will cut the 32.5 per cent bracket to 30 per cent. Anyone earning up to $200,000 will pay no more than 30 cents in the dollar. This is good news, but you will have to wait till 2024, and it requires the Liberal party to retain leadership at the next election, and for the changes to pass through Parliament.
3. Instant Asset Write Off
The instant asset write off has been a very popular incentive for small businesses. This budget extends this offering to medium businesses (up to $50 million turnover) and also increases the threshold from $25,000 per asset to $30,000.
4. Export Market Development Grant
Exporters will benefit from $60m in additional funding to boost the Export Market Development Grants scheme. The scheme supports small and medium sized exporters to identify and develop overseas markets for their products.
Those businesses employing apprentices will receive double the incentive payment that they do now. It will increase to $8,000 per placement. The apprentice will also receive a $2,000 payment.