I’ve been around for long enough to remember when Budget night was actually one filled with anticipation. Lots of new announcements of changes to government financial policy designed to drive reform and improve the economy. It was actually a real challenge to get your head around all of the changes and the develop plans to work within the new rules and take advantage of new opportunities.
This was certainly not the case with last night’s Federal Budget (but at least it wasn’t held the day before - April Fools Day).
While we all knew the real focus of the Budget last night would be on improving the Government’s chances of being re-elected, there was always some hope that it would include more as well. Alas it was not to be. Given the slowdown in the economy as the property market declines, the stimulatory nature of the Budget announcements could help arrest this and provide some further impetus for expansion.
Essentially the Budget can be summarised as follows:
- Nil on the first $18,200 income
- 9% on income from $18,201 to $45,000
- 30% on income from $45,001 to $200,000
- 45% on income above $200K
All of these announcements are subject to legislation being passed by Parliament, which could be a tough ask in the short term given the impending announcement of an election. The Labor Opposition did however provide support for personal tax cuts prior to Budget night, so regardless of the result of the election these may still go through.
If you have any questions in relation to these measures and their potential impact on you, please contact us.