Tax

-

July 9, 2021

Budget 2019 - A Quick Illumin8 Wrap Up

Andrew Van De Beek

Founder & Head of Purpose

The Treasurer Josh Frydenberg dropped the 2019 #Budget last night. The big takeaway being, #BackInTheBlack! And as always, we've whipped up a quick summary of what caught our attention, and what you need to look out for. What did you think?

There you go, another budget speech delivered, and if it wasn’t clear, back in black seemed to be the theme of the evening. Frydenberg announcing a range of cuts, incentives and infrastructure spending that will no doubt have impact for people across Australia. We whipped up a quick video, watch it here.

The Government continued their habit of redefining what a ‘small business’ is, offering those with under $50million annual turnover the opportunity to instantly wipe off the tax of business purchases up to $30k. Then the Treasurer suggested, with a tax write off like that, you could go and buy yourself a new fridge. Harvey Norman might have a good month? #TaxWriteOff

Significant changes may be realised regarding personal income tax rates, and more importantly the tax brackets themselves. Under 45k, you’ll be handing over 19c to ScoMo. 45k to 200k? You’ll be waving goodbye to 30c in the dollar.

This essentially eliminates the existing bracket at 87k to 180k, while shuffling the rates around, for a ‘simpler’ tax system. As an example, if you’re earning 100k, you’ll see close to 5k back in your pocket under the new scheme, which is a big difference, which realistically is going to boost punters’ deposable income. All part of the Governments plan to ensure the local economy remains healthy as global partners and developing nations look increasingly risky.

In a post budget speech interview with the ABC, Josh was questioned around the validity of his claims, specifically around the guaranteed surplus, a bold statement in the current economic climate. Commodities, and Australian exports are particularly important to his equation, yet are the most exposed to global trade and subsequent movements in global economies. Begging the question, is this realistic, or idealistic? Australia is a strong economy, we are however tied to global markets, and what happens to trading partners will directly impact us, the extent to which we will be is where the argument lies.

Keep in mind the majority of this will be actioned if the Liberal Government remain in power, meaning, we still don’t have certainty about the likelihood of these policies coming to the table. Perhaps don’t get too excited. Current odds are putting Labour as the clear favourite at a 5:1 chance.

What did Illumin8 notice?

Shane shared that improved data matching was going to help the ATO & Centerlink work together, to actually see what you’re receiving. Making reporting benefits accurately really important.

Christina noticed the proposed increase of the instant tax write off threshold to 30k.

Mick chatted about increased funding for apprenticeships over the next five years. Good news for employers, and job seekers.

And our friend James O’Reily unpacked what the cash implications could be under the proposed rejig of tax rates and brackets.

Watch the video for the team’s key points. If you have any questions, reach out,we’d love to hear your thoughts, and answer any queries you might have around how this could impact you, your family, and your business.

Tax

Hey Bill - We're for the People

Accountants, we’re for the people. The people who are building businesses, actually making jobs, dreaming up the future Australia, and bloody well contributing to the tax system. 

Andrew Van De Beek

Founder & Head of Purpose

Tax

The Deal with Motor Vehicle Deductions

The ATO have released their hit list, most notably is the crackdown on work related motor vehicle and travel deductions.

Michael Walter

Head of Accounting

Tax

illumin8ing the 2018 Budget

The 'hear hears' have subsided, suits and ties removed and we wait for the obligatory opposition response. Our team has been cutting through the crap to identify some of the aspects of the budget that impact YOU.

Andrew Van De Beek

Founder & Head of Purpose

SIGN UP FOLKS

Get our monthly newsletter, full of sweet tips.

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.

If it sounds like we might make beautiful business together, why not get in contact and discuss your accounting and bookkeeping options with our team

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.