Straight out of Budget lockup, here’s a quick rundown of the main features of the Australian Federal Budget 2019.
The Federal Government has forecast a fiscal surplus for each year of the 2019-23 forward estimates period. This has given the Government the scope to not only fully deploy the $9 billion in potential additional expenditure or tax cuts that it foreshadowed in last December’s mid-year economic and fiscal outlook, but to introduce further personal tax cuts on top.
The Government has also expanded an existing business stimulus measure by increasing the instant asset write-off for small and medium business to assets costing up to $30,000.
To partly offset the above, the Government has announced a number of tax integrity initiatives which will impact larger businesses and high wealth individuals in particular.
Significant infrastructure spending will continue under the 10-year infrastructure plan first announced in the 2018 Budget.
The Budget represents a relatively safe fiscal approach, giving rise to the expected surpluses over the period 2019 to 2023. There is a need to strike a balance (up on the high-wire of future commodity price fluctuations) between stimulating domestic economic activity and consumption, and the reduction of government debt.
Read our two page PDF summary for economic and fiscal analysis and the top five business tax changes.