Whitsunday Coast Chamber of Commerce Budget Review

Small Business Welcomes Budget Surplus, Tax Cuts and Calls for Corporate Tax Rate Acceleration.

The Whitsunday Coast Chamber of Commerce and CCIQ welcome the announcement of a budget surplus for the first time in a decade. The Federal Budget papers revealed a surplus of $7.1 billion a year earlier than originally forecast and at a time where receipts from Australia’s mining sector continues to support the economy with the nation’s finances benefitting from higher commodity prices.

Income tax relief, is a positive for the nation’s workers and a boost amidst a backdrop of weakening business confidence and subdued growth.

Some of the key take-outs of the Federal Budget that are relevant to small business.

OVERALL BUDGET OUTLOOK

·         Total revenue for 2019-20 is expected to be $513.8 billion, an increase of 3.6% on 2018-19.

·         Total expenses are expected to be $500.9 billion, an increase of 2.8% on expenses in 2018-19.

SMALL BUSINESS

·         The instant asset write-off scheme will be increased from $25,000 to $30,000, which businesses with an annual turnover of $50 million can use each time they purchase new assets.

·         Higher tax discount rates for unincorporated small businesses up to $1,000, to 13% in 2020-21.

SKILLS AND TRAINING

·         The Budget includes $525 million for a skills package, which in part is designed to help create 80,000 new apprenticeships in sectors with skills shortages.

·         Businesses that hire apprentices in these industries will receive incentive payments worth $8,000 per placement.

·         The program includes a $2,000 incentive payment for apprentices.

INFRASTRUCTURE

·         Increasing infrastructure investment to $100 billion over the decade, including

·         Bruce Highway at $10 billion.

·         M1 Pacific Highway at $1.2 billion.

·         Beerburrum to Nambour Rail Upgrade at $390 million.

·         Brisbane Metro at $300 million.

·         Melbourne to Brisbane Inland Rail total funding at $9.3 billion

AGRICULTURE

·         Immediate and targeted relief to Australian farmers dealing with natural disasters.

·         New $3.9 billion Emergency Response Fund.

·         $300 million in grants for flood-affected farmers.

·         $1.8 billion in low-cost loans to support banks offering lower interest rates to flood-affected farmers.

·         $6.3 billion in assistance and concessional loans to support farmers affected by drought.

·         Investing $3.9 billion in the Future Drought Fund.

INCOME TAX

·         Tax relief for low and middle-income earners up to $1,080 for singles and $2,160 for dual income families.

·        32.5% rate will be lowered to 30% and 37% rate will be abolished in 2024-25.