2019 Federal Budget Update Significant Impacts

Welcome to Advivo’s summary of what we believe are the most significant impacts for businesses from last night’s Federal Budget.

Our comments are predominantly focused on the measures that affect businesses and their owners.

Importantly, given there is almost no time to legislate these items, this government may need to be re-elected in order for these proposals to proceed.

We have included the full budget report from Thompson Reuters which provides greater detail and we have cherry-picked the key points affecting businesses below.


  • Income tax rate reduction for individuals from 2025 financial year
  • Increase in LMITO (Low- and Middle-Income Tax Offset)
  • Medicare levy low-income thresholds to increase
  • One-off tax-free energy payment to pensioners


  • Company Tax Rate reduction to 25% brought forward to 2021-2022
  • Increasing the instant asset write-off to $30,000 and expanding it to include businesses with a turnover of up to $50 Million effective immediately
  • Now there are three different instant asset thresholds that apply in the current financial year
  • Proposed Div7A Amendments deferred for another 12 months
  • ABN Holders – Additional compliance and reporting:
  1. The requirement to update/confirm details every 12 months with a possible annual fee to be introduced
  2. Your ABN can be cancelled if tax returns are not lodged on time
  • $60 Million additional funding for EMDG (Export Market Development Grant)
  • Jobs and Skills Package – New incentive payments for employers and apprentices


  • Work Test Exemption to be extended to age 66.
  • Spouse Contributions age limit to increase to 74.
  • The three years carry forward non-concessional contribution rule extended to include people aged 65 and 66.
  • Simplification of the ECPI (Exempt Current Pension Income) rules will bring them back into line with the previous rules and save some superannuation funds from requiring an actuarial certificate.

Big Brother is Watching – Expect Increased Audit Activity

  • Extra $1 Billion in funding to combat Tax Avoidance.
  • Dedicated unit to combat sham contracting.
  • Increased Data Analytics and data sharing between agencies.


  • Pleasing to see a number of reliefs for farmers including:

Targeted relief to affected regions.

  • Increased LCT (Luxury Car Tax) refunds for farmers and tourism operators.

For more detail please see the full budget report from Thompson Reuters.

If you have any questions or concerns, feel free to contact us today at Advivo. Call us on 07 3226 1800 or send us a message through our Contact page.