The Chamber of Commerce and Industry Queensland (CCIQ) has welcomed the announcement of a budget surplus for the first time in a decade with the nation’s finances benefitting from higher commodity prices with income tax relief, a positive for the nation’s workers.
The Federal Budget papers revealed a surplus of A$7.1 billion effectively being brought forward a year earlier than originally forecast and at a time where receipts from Australia’s mining sector continues to support the economy amidst a backdrop of weakening business confidence and subdued growth.
We have broken down some of the key takeouts 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.