Key points of the Australian Budget 2019
The Australian Budget for the fiscal year 2019 ”2020 sets out economic and fiscal outlook of Australia. It includes revenue estimates, expenditure for the fiscal year and also for the consecutive 3 financial years
Wages and Income tax cuts
The personal income tax was the main focus of the previous year budget. It is once again received a spot light this year. The income tax cuts to be announced will greatly benefit small businesses
R&D Tax incentive
Many reported last year that Australia wants to position itself on top of the innovative hubs. However, it lags in comparison to China, South Korea and Japan. These will have huge implications on businesses that depend on tax concession. The raise in fund allocation towards R&D was lightly broached disappointing many.
The Export Development Grant Scheme received a top up of $60 million. This is definitely a positive step to take the Australian SMEs towards global audience.
The Global Talent scheme that was introduced last year was a huge success. It is likely to extend the scheme till July 2019 and to have the minimum income requirement lowered.
Corporate Tax cuts
The corporate tax for the small business is reduced by 25%. This will come into effect from July 1 2021.