Tax cuts and power bill relief: what we know about Budget 2019
With just hours until Treasurer Josh Frydenberg unveils the 2019 Federal Budget, here's what we know so far
Budget big picture
- Overall theme: 'A stronger economy and a secure future'
- Federal election is due in mid-May
- Better than expected surplus for 2019/20 (MYEFO: $4.1 billion in 2019/20)
- 3 per cent growth for 2019/20 (MYEFO forecast)
- 5 per cent unemployment rate for 2019/20 (MYEFO forecast)
- Migration cap to be reduced to 160,000 from 190,000
- 1.25 million new jobs to be created over the next five years
- Expectation of a 'stimulus' worth about $6 billion, adding about 0.4 percentage points to GDP
Tax
- Likely bring-forward of the July 2022 income tax cuts, on top of those already starting 1 July this year, as part of an already-legislated $144 billion plan
- Possible improvements to tax offsets for low-income earners
- Rules around $69 billion GST revenue distribution to the states have changed, with Western Australia the main beneficiary
- Instant asset write-off extended to June 2020 and increased from $20,000 to $25,000
- Allows small business with an annual turnover of less than $10 million to deduct the cost of assets such as cars and equipment
- Tax office and other agencies to crack down on welfare cheats and tax dodging
Roads and rail
- $75 billion infrastructure plan over 10 years continues
- $2.2 billion road safety plan including black spot repair and new national office of road safety
Financial services
- $600 million boost for financial regulators ASIC and APRA to deal with banking royal commission fallout
- $35 million to expand the jurisdiction of the Federal Court of Australia to include corporate and financial sector criminal misconduct
Energy
- $2 billion for Emissions Reduction Fund, now called the Climate Solutions Fund
- $1.4 billion for Snowy Hydro 2.0
Welfare
- $285 million to help almost four million Australian pensioners and others cover their energy bills
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