Federal Budget 2019

In Summary

In 2018/2019

1. Low- and middle-income earners will benefit from tax savings as a result of an increase in the low- and middle-income tax offset.
2. The instant asset write-off threshold will increase from $20,000 to $30,000 for small and medium sized businesses with aggregated turnover of less than $50 million.
3. A one-off payment will assist eligible social security and DVA recipients with the cost of energy bills. This payment ($75 for singles and $125 for couples) will apply to recipients of various qualifying payments including Age Pension and Veterans’ Pensions.
4. Aged Care funding will increase.

From 1 July 2019

• The Partner Service Pension will be available to former spouses of veterans.

From 1 July 2020

• People aged 65 and 66 will be able to make voluntary super contributions without having to meet the work test. The ability to utilise the bring-forward rule will also be amended to allow individuals less than age 67 to contribute a greater amount to superannuation. This means the work test requirements will align with Age Pension age which will be 67 from 1 July 2023.
• The age limit for spouse contributions will increase to 74.
• More flexibility will be provided when calculating exempt current pension income.