Australia's 2018-2019 Federal Budget

I believe that everyone was swept by the latest federal budget bill last week, and all sorts of news have come one after another. So what are the changes in the tax aspects that people are more concerned about? Today we give you a general summary!

1. The percentage of tax revenue is written for the first time:

The government stipulates that the tax revenue should not exceed 23.9% of the gross national product (GDP). Once it exceeds the ratio, tax reductions will be implemented in the future. In order that the proportion of tax revenue to GDP will not exceed this limit after 2022-2023, the government must reduce taxes by 80 billion to 100 billion within the next five years. This is the first time that the tax-to-GDP ratio has been written into the fiscal policy. It is expected that the average value of long-term taxation in the 30 years before and after will fall to 22.3%. (As shown below)

2. Relief plan for personal income tax:

In the new fiscal year, a small tax cut will be implemented. Low-income people (annual salary of RMB 30,000) will be entitled to a tax reduction of AUD 200 per year. For middle-income people (annual salary of 3.7 million to 90,000), the maximum tax reduction subsidy is AUD 530 ( The previous fiscal year was 445 Australian dollars. The family's tax relief was up to 1060 Australian dollars.

3. Adjustment of personal income tax system:

As shown in the above chart, the upper limit of the 32.5% tax rate standard will increase from A$87,000 to A$90,000. In other words, starting from July 1st next year, this policy will be good news for workers earning between $80,000 and $90,000 annually. The tax rate will be lowered from 37% to 32.5%.

4. Medical insurance tax rate:

In addition to personal income tax cuts, the Medicare rate, which was set to rise 0.5% next year, was also announced. Medicare Levy remained at 2.0%. This is undoubtedly a good news for us!

5. Benefits of Small Business:

A good news for SMEs is that the previously proposed policy that depreciation of assets under 20,000 will not be depreciated immediately will be postponed until June 30, 2019.

6. Limit cash payments:

Some companies have to pay attention to the fact that in the current budget, restrictions have been placed on cash payments, and everyone should not hesitate to violate the law.

From July 1, 2019, a company can only receive up to 10,000 Australian dollars in cash, and more than 10,000 Australian dollars must be paid by cheque or electronic payment system.

With regard to this year's Budget, reforms in all aspects are relatively large and can be said to be closely related to our lives. We have just listed a small amount of information related to taxation. Members can refer to the full contents of the following websites: https:/ /www.budget.gov.au/2018... 9890 6388 Contact us.