Released at 7:30pm on 6 October 2020, the Federal Budget 2020-21 was delayed as a result of Australia’s – indeed the world’s – attention being diverted to managing the COVID-19 pandemic.
As a result, the Budget is all about stimulus an support. Read more
With only two more sleeps until the 2019 Federal election, Australians have a plethora of promises to consider. We’ve found a very helpful comparison of the two major parties’ tax policies, released by The Tax Institute.
To a large extent, the parties have sought to differentiate themselves through their tax policies. Their proposals present two different versions of Australia. In the Coalition’s 2019 Budget, we were presented with a long-term plan for “lower, simpler, fairer taxes”. Labor have presented their response as a plan for a “fair go”.
Our views below are simply related to the parties’ tax policies in isolation, and how these might affect our clients. Of course, you will need a broader perspective to assess the overall merits of each party.
See our review of the Federal Budget – the issues that matter most to you, your business and the Tasmanian economy:
Read our Federal Budget review
The 2017-18 Federal Budget delivers an overall optimistic economic and fiscal outlook for Australia. After a 2016-17 budget deficit of $37.6bn, the deficit for 2017-18 is forecast to be down to $29.4 billion. Following that comes a projected surplus in 2020-21 of $7.4bn.
The Budget also anticipates an economic rebound, with growth at 3.0% from 2018-19. Forecast tax receipts for 2017-18 have been revised up by $6.4bn over the forward estimates to 2019-20 due to a range of new policy measures announced in the budget.
Despite no major new superannuation measures in the 2017-18 Federal Budget, the Government continues to tinker with Superannuation rules. In particular, the introduction of the $300K additional non-concessional contribution for older downsizers creates an exception to the recently-introduced Total Superannuation Balance $1.6m cap, and the concessions for first home-buyers to use super to save for a deposit sends mixed messages about the purpose of superannuation.
Small and medium businesses were the big winners of last year’s budget. It is therefore no surprise that the 2017-18 Federal Budget announcements have been less stimulating. However, there are still tax and business planning opportunities coming out of the Budget which we look forward to assisting our clients with.
Housing affordability has been one of the major components of this year’s Federal Budget, which featured a comprehensive package of tax and superannuation measures aimed at increasing housing availability and improving affordability. The government has also reigned in tax breaks enjoyed by many residential property investors in the hope of providing Australians with confidence that tax concessions are correctly targeted. These measures will be complemented by a number of supply-side initiatives including the release of Commonwealth land and housing supply targets.
The option of claiming a standard tax deduction for work expenses has long been talked about, in the hope of simplifying personal tax returns. It was speculated to be delivered in this year’s Federal Budget, however was not to be.
The 2017-18 Budget also contained no changes to the personal income tax rates and thresholds. This means that the Temporary Budget Repair Levy (2% on incomes over $180,000) will still expire at the end of the 2016-17 financial year.
The Australian Government finally had most of its 2016 budget measures on superannuation pass through Parliament on 23 November, following a tortuous process of negotiation with the cross-benches. Most of these changes to Australia’s superannuation system will take effect from 1 July 2017.
The Turnbull Government’s Federal Budget, delivered on 3rd May 2017, included the most significant structural changes to the Australian superannuation system since compulsory superannuation was first introduced. Pre-budget speculation had anticipated many changes, however some have gone much further than anticipated.
