The 2018-2019 budget has come through with a few positives, items that will be carried through to the new financial year and more. The budget entails a lot of promises for small to large businesses, individuals and the government.
To simplify it, here are a few small business and individual focused points that you may benefit from:
· A 7-year income tax plan will reduce taxes for low income earners brining slight financial relief
· Taxes will be lower for small to medium Australian businesses
· The budget will extend the $20,000 asset write-off until 2019
· $530 worth of tax savings will be gained by tax payers earning under $80,000 pa.
· For businesses earning under $20 million (most start-up companies) the refundable R&D offset will be the applicable company tax rate plus a premium of 13.5 percentage points. This allows R&D costs to be funded, therefore companies can inject it back into their research and development.
· A limit of $10,000 on cash payments to a company will be introduced in 2019
· No tax deductions will be made where PAYG is not withheld for example payments where contractors don’t have an ABN.
To read more about the 2018-2019 Budget, click here.