Its an exciting day for accountants around the country following the Federal Budget
Wow – what an exciting day for accountants and finance journalists today who are recovering after spending last night sifting through Federal Budget papers.
Ok, so the Federal Government handed down the budget last night which the media are labelling a pre-election budget. I don’t intend on going through the budget in detail, rather picking out a couple of key positives for middle income earners and small business.
Personal income tax cuts
Hooray! For those earning between $37,000 and $90,000 you’ll receive a tax offset of $530 when you lodge your tax return for the 2019 financial year, from July 2019. For those earning between $18,000 to $37,000 or $90,000 to $125,000, will also benefit from changes to the low income tax offset, albeit less than the maximum $530.
Here’s a tip for a bit of fiscal responsibility, if you are lucky enough to get your hands on this offset, why not use it to pay off your mortgage. Its clear the public sector doesn’t know how to reduce debt in today’s political environment.
If you don’t have a mortgage, talk to your accountant and financial advisor as to some options for investing this money.
Middle income earners are also set to benefit from small tax cuts kicking in next year, with the tax cuts due to increase further over the following 6 years to stop bracket creep. If the proposed changes pass through the senate, again those with mortgages could save thousands over the life of their loan if they use these additional funds to payoff their mortgage.
Check out todays papers or online free online news websites to find out exactly what it means for you.
If you want to know how much you could save by paying extra off your mortgage, why not contact Blambles Finance Group and ask the question. Who knows, we might be able to find additional ways to save on your loan repayments.
$20,000 instant tax write-off
The $20,000 instant tax write-off for small businesses (with turnover of less than $10 million) has been extended for another year.
This is great news for small business. If you are looking at purchasing some new equipment, make sure you talk to your accountant to see if you are eligible for the instant write off. Assuming a company tax rate of 27.5%, your business could be eligible for a tax refund of $5,500, a great bonus for your cash flow.
Blambles Finance Group have access to a wide range of different asset, motor vehicle and equipment financiers who can potentially finance 100% of the purchase price of these assets, at very competitive interest rates, within as little as 24 hours in some cases.
If you are looking for asset, motor vehicle or equipment finance, make sure you talk to us to ensure you are getting competitive terms for your finance. Can you really trust the dealer or your bank to give you the best deal???