Archived April 2019 commentary. A plain-English take on which 2019-2020 Budget announcements were likely to become reality. Kept for reference only.
Despite being bombarded with Budget commentary, it’s worth pausing. Budget night isn’t always that relevant to ordinary people. Announcements must be drafted into Bills, introduced to Parliament, pass both Houses and the scrutiny of Standing Committees, and finally be signed off by the Governor-General before they become law – a process that frequently takes years. Once an election is called, Bills that haven’t passed lapse and the process restarts under the new government.
Energy Assistance Payment
The Government undertook to pay $75 to qualifying singles and $125 to qualifying couples as a one-off payment towards energy bills, generally for those receiving Veterans’ or social security support.
Personal tax rates
Having legislated company tax cuts in previous years, the Government announced reductions for personal taxpayers – but the main changes weren’t scheduled to start until the 2023 financial year, so there was no need to get too excited yet.
Instant asset write-off
The instant asset write-off was to be increased to $30,000 and extended to businesses with turnover up to $50 million. The existing $20,000 write-off had been extremely popular, but the advice was not to buy on the basis of a deduction until the legislation was actually in place.
Shareholder loans
Taxpayers who had borrowed from their private companies were still waiting for clarity on how those loans would be treated – and would have to wait longer. No relief was expected for pre-1997 loans quarantined under the existing legislation.
The black economy
Both major parties signalled they would pursue the black economy. This Budget would force people with an ABN to lodge tax returns regardless of whether they earned more than the tax-free threshold, and to update their details annually. Extra resources were provided to the Tax Avoidance Taskforce, and employers using sham contracting arrangements could expect scrutiny.
Luxury car tax cut for primary producers and tourism operators
Primary producers and tourism operators eligible for a refund of up to $3,000 in luxury car tax on 4WD and AWD vehicles were to become eligible for refunds of up to $10,000 on vehicles acquired after 1 July 2019.
Supporting apprenticeships
Businesses in targeted trades (bakers, bricklayers, carpenters and plumbers) were to be eligible for grants of up to $4,000 to hire apprentices, and apprentices eligible for up to $2,000 on hitting key milestones. Teachers working in very remote areas for four years would have the HELP debt relating to their teaching qualifications waived. As with much of the Budget, none of this was likely to become law before the election – so it was a case of waiting to see what came to fruition.