In the wake of the election, Cutcher & Neale’s Stuart Chan explains how the Coalition’s promises will affect you.
The Coalition are providing tax breaks for more than 10 million Australians by simplifying the current system and removing the 37% tax bracket entirely.
In the process, the Coalition are planning to increase the 19% tax rate to $45,000 (previously $37,000) and they have also proposed reducing the 32.5% to 30% resulting in a flat 30% for anyone earning between $45,000 and $200,000.
Those earning $200,000 a year will get a tax cut worth $11,640. See the below graph of what the proposed tax rates may look like.
As part of the 2019 budget, businesses with a turnover of under $50 million but more than $10 million can write-off assets against their taxable income. Previously, businesses turning over more than $10 million were excluded from the scheme.
The Coalition also increased the threshold from $25,000 to $30,000, as of 2 April 2019. This is a significant increase in threshold from 2017, which gave a $20,000 instant write-off amount.
The Coalition have promised to lift the Medicare rebate freeze. This means Medicare payments to medical practitioners will increase to reflect rising costs associated with public care.
The Federal Budget contained a $1 billion funding boost, including $448.5 million for GPs to better treat patients with chronic diseases, and investments in mental health. It will add 30 new Headspace Centres, build new residential eating disorder treatment facilities nationally, and take new measures to prevent Indigenous youth suicide.
The Coalition recently announced a First Home Buyers Scheme which allowed first home buyers to only supply a 5% deposit and the government would make up the remaining 15%.
This would result in first home buyers saving up to $10,000 by not having to pay lenders mortgage insurance. The scheme is limited to the first 10,000 homebuyers and for single people earning up to $125,000 or couples earning up to $200,000. This could offer an opportunity for the next generation of young Australians looking to purchase their first home. Keep in mind this does not limit itself to young Australians but anyone who has yet purchased their first home.
Should you have any questions or want further information, please do not hesitate to contact Cutcher & Neale on 1800 988 522 or email@example.com